Tito's acquires majority stake in LALO Tequila brand
Tito's Handmade Vodka acquired a majority stake in LALO Tequila, marking the Austin-based company's first strategic acquisition. The deal unites two family-built spirits brands and provides LALO with expanded distribution while preserving its traditional production methods.
From Austin, With Spirit: Tito's Handmade Vodka Welcomes LALO Tequila to the Fifth Generation, Inc. Family
Deal Unites Two Iconic Austin-Born Spirits Brands Built on Family Tradition
AUSTIN, Texas, Sept. 23, 2025 — Tito's Handmade Vodka, the brand behind Texas' first legal distillery and the award-winning vodka, today announced it has entered into a definitive agreement to acquire the majority stake in LALO Tequila, one of the fastest-growing tequila brands in the United States.
Co-founded by Eduardo "Lalo" González, David "R" Carballido, and Jim McDermott, LALO honors three generations of tequila-making tradition to create a spirit that's refreshingly modern. Using only three ingredients – fully mature Highland agave, deep well water from Jalisco's mineral-rich soil, and champagne yeast selected for its harmonious flavor profile – LALO has crafted a blanco tequila with a clean, distinctive flavor that's quickly winning fans across the country.
"At Tito's, we've always said if you're going to do something, do it well," said Tito Beveridge, founder of Tito's Handmade Vodka. "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 newly formed relationship with LALO will provide the tequila brand with strategic sales support and access to an expanded distribution network to accelerate its scale from a local name to one with global reach. "Lalo" González will continue to steward the brand's production, carrying on his family's legacy and the tequila's integrity for generations to come.
"My late father is the namesake of this brand, and I know he would be proud to see how far we've come," said González. "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."
LALO has rapidly built a loyal following for its clean, unadulterated flavor and has emulated the Tito's ethos of resisting industry trends of taking shortcuts. Much like Tito's early days in Austin, the brand has grown organically through word-of-mouth, earning its place on the shelves and backbars across the country by winning fans over with its exceptional liquid and distinct identity.
"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," said Jim McDermott.
"This partnership gives us the chance to share the beauty of Mexico with the world, inviting more people to experience our country while staying true to our living Mexican legacy," added David Carballido.
This is the first strategic acquisition in the history of Tito's Handmade Vodka and represents a different type of spirits partnership – entrenched in mutual respect and structured to allow both companies to stay focused on what they do best: making exceptional products.
PJT Partners served as financial advisor and DLA Piper served as legal advisor to Tito's. Perella Weinberg served as financial advisor and Wilson Sonsini Goodrich & Rosati as legal advisor to LALO Tequila.
The transaction is subject to customary closing conditions, including required regulatory approvals, and is anticipated to close in the near future.
