Guinness owner Diageo has acquired ‘super-premium’ dark rum brand, Don Papa Rum for an initial £385 million.

The alcoholic beverage company has also put forward a further potential consideration of up to £155.4m through to 2028 subject to performance, reflecting the brand’s current growth potential.

Diageo has said the acquisition will help to strengthen its position in the rum category which had a compound annual growth rate of 18% in Europe between 2016 to 2021.

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Don Papa Rum, which was first launched in the Philippines in 2012, has ‘consistently outperformed the market’, according to Diaego, and is now available in 30 countries.

The acquisition will be funded through existing cash reserves and is expected to close in the first half of this year.

“We are excited by the opportunity to bring Don Papa into the Diageo portfolio to complement our existing rums,” Diageo Europe president, John Kennedy said.

“This acquisition is in line with our strategy to acquire high growth brands with attractive margins that support premiumisation, and enables us to participate in the fast growing super-premium plus segment.”

Don Papa Rum founder, Stephen Carroll added: “Diageo has a strong track record in nurturing founder-led brands.

“They believe in our unique story and have genuinely embraced our brand idea. We believe this acquisition is a great opportunity to take Don Papa into the next exciting chapter of its development.”