Sammy Hagar and the deal that changed his life
The 78-year-old American singer and guitarist Sammy Hagarformer member of Montrose And Van Halen and now in force ai Chickenfootin an interview with Louder Sound he told, among other things, the moment in which he finally managed to achieve financial tranquility. What gave him a peaceful retirement years ago was not the signing of an advantageous recording contract, but rather the sale of his tequila company for an amount of 80 million dollars.
This is the story of the Californian-born musician: “I sold my tequila company for 80 million dollars… That money changed my life. With music you’re never sure. You always think, ‘Well, I’m rich now, but it could all end tomorrow’. I grew up poor. I never wanted to be poor again.”
Hagar then described the surreal feeling of waking up in the morning thinking that he possessed such wealth. “I’ll tell you what it’s like to wake up with $80 million in the bank… you wake up, get out of bed, lie down on the floor and roll around laughing for a couple of minutes. Then you get up, pee and get your coffee… and then roll around laughing for another couple of minutes. And you think, ‘How the fuck did I do that?'”
Sammy is someone who likes to live in luxury and this deal allows him to continue maintaining a high-end lifestyle. “I like Ferraris, I like beautiful houses and fine wines. I couldn’t live the way I’m living now if it weren’t for that agreement.”
As reported by Ultimate Classic Rock Sammy Hagar he threw Cabo Wabo Tequila in 1996 as a proprietary brand for its Cabo Wabo Winery in Cabo San Lucas, Mexico. The brand experienced notable growth over its first decade, going from 37,000 cases in its founding year to 147,000 cases per year at the time of sale.
The deal, finalized on May 7, 2007, involved Hagar selling 80 percent of its Cabo Wabo tequila to Gruppo Campari for $80 million. At the time of the acquisition, the company generated approximately $60 million in annual sales and was the second best-selling premium tequila brand in the United States.
The commercial relationship with Campari continued even after the initial sale. Van Halen News Desk revealed that in 2010 Campari purchased Hagar’s remaining 20% stake for an additional $11 million. This allowed him to exit the brand financially, while maintaining ownership of Cabo Wabo Cantinas.
