Diageo Agrees $1 Billion Deal For Clooney’s Casamigos Tequila…
Diageo has agreed to acquire Casamigos – the premium tequila brand founded by Hollywood actor George Clooney – for up to $1 billion.
The deal includes an initial consideration of $700 million, with a further $300 million in performance-related earn-outs over ten years.
Diageo said the price reflects the brand’s ‘exceptional growth trajectory and upside potential’. Over the last two years, Casamigos has grown at a compound rate of 54% and is expected to grow production from 120,000 cases in 2016 to 170,000 cases this year.
Diageo North America president Deirdre Mahlan said: “I am excited by the opportunity to bring Casamigos into the Diageo portfolio, which allows us to further penetrate this exciting and high-growth category. We believe Casamigos will play a complementary role alongside Tequila Don Julio.”
Casamigos founders Rande Gerber, George Clooney and Mike Meldman will continue to play a role in the business. Diageo said it ‘looks forward to partnering with them to realize the full potential of the brand. Clooney said that he would celebrate the deal ‘with a shot… maybe two’.
Diageo chief executive Ivan Menezes added: “We are delighted to announce this transaction today to extend our participation in the tequila category. It supports our strategy to focus on the high-growth super-premium and above segments of the category. With the global strength of Diageo we expect to expand the reach of Casamigos to markets beyond the US to capitalize on the significant international potential of the brand. We look forward to building on the remarkable success of Casamigos to date.”