Tito's Handmade Vodka, one of Austin's most famous hometown brands, has acquired a majority stake in a smaller but increasingly popular local brand, Lalo Tequila. Tito's announced the acquisition in a press release that called Lalo "one of the fastest-growing tequila brands in the United States."

This is also landmark decision by Tito's because it's the first "strategic acquisition" ever for the company. There are a few conditions to nail down, like regulatory approvals, that need to happen for the sale to close, but these are expected to happen "in the near future."

Lalo was co-founded by Eduardo "Lalo" González, David "R" Carballido, and Jim McDermott. Its only three ingredients are Highland agave, deep well water form Jalisco, and champagne yeast. That simplicity is part of why leaders at Tito's wanted to make the acquisition.

"At Tito's, we've always said if you're going to do something, do it well," said the vodka company's founder, Tito Beveridge, in the release. "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."

Lalo benefits from the sale with increased sales support and access to the larger distribution network that Tito's enjoys. "Lalo" González will still be involved with the brand, which has been a generational family project. The founders want to continue representing their "living Mexican legacy" through the product.

"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."

Tito's also uses the generational story to appeal to buyers, as Beveridge is a sixth-generation Texan. A sense of place — whether it's Texas or Austin — is a big part of the Tito's brand.

"Tito has been a close friend in Austin for years and has deeply influenced the way we approach what we do," said McDermott. "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."