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Tito's Handmade Vodka, known for its position as Texas' first legal distillery and a craft vodka brand, has announced a strategic acquisition of a majority stake in Lalo Tequila, one of the fastest-growing tequila brands in the US.

This move marks Tito's first acquisition in its history and signifies a deeper commitment to expanding its footprint in the spirits market while maintaining a focus on quality and tradition.

Founded by Eduardo 'Lalo' González, David 'R' Carballido and Jim McDermott, Lalo Tequila is celebrated for its traditional tequila-making practices, utilising only three core ingredients: fully mature Highland agave, mineral-rich deep well water from Jalisco and champagne yeast.

This minimalist approach has allowed Lalo to craft a blanco tequila that emphasises clean, distinctive flavours, resonating with consumers seeking authenticity in their spirits.

Tito Beveridge, founder of Tito's Handmade Vodka, said: “At Tito's, we've always said if you're going to do something, do it well. I’ve known the Lalo founders for a long time. They care about the juice. They keep it simple. They do things the right way, not the flashy way. That felt like home to us.”

The acquisition is poised to provide Lalo Tequila with enhanced strategic sales support and access to Tito's extensive distribution network, facilitating the brand's growth from a local favourite to a nationally recognised name.

“This moment is a natural continuation of our journey, and we're excited to introduce Lalo to more people across the world while preserving every element that makes us special,” González added, highlighting the importance of maintaining the brand's integrity.

Lalo Tequila has rapidly gained traction in the competitive spirits market, echoing Tito's early success, which was largely driven by word-of-mouth and a commitment to quality. This partnership is expected to leverage Tito's established market presence to further accelerate Lalo's growth trajectory.

McDermott commented: “Tito has been a close friend in Austin for years and has deeply influenced the way we approach what we do. Our two companies are stronger together, and we're excited to continue this journey with the full support of a company that understands what it means to grow with a singular focus.”

The transaction is subject to customary closing conditions, including regulatory approvals, and is anticipated to close soon.

Financial advisory services for the deal were provided by PJT Partners for Tito's and Perella Weinberg for Lalo, with DLA Piper and Wilson Sonsini Goodrich & Rosati serving as legal advisors, respectively.