Diageo acquires George Clooney’s Casamigos tequila for US$ 1 billion

22 June, 2017

Warning: foreach() argument must be of type array|object, bool given in /home/mexiconow/public_html/sites/mexiconow/wp-content/themes/mexiconowwpnew/single.php on line 253

London-based spirit drinks distribuitor Diageo has entered into a definitive agreement to acquire Casamigos, which claims to be “the fastest growing super-premium tequila brand in the U.S.”

The transaction values Casamigos at up to US$ 1 billion, with initial consideration set at US$ 700 million and a further potential US$ 300 million based on a performance linked earn-out over 10 years.

Casamigos was created in 2013 by founders Rande Gerber, George Clooney and Mike Meldman. According to Forbes, each one of them own equal stakes at the company, meaning they could get up to US$ 233 million pretax from the initial sale.

Casamigos has received numerous awards and accolades from tequila experts, taste makers and influencers across the U.S.

The brand’s quality and uniqueness has delivered impressive growth, reaching 120,000 cases in 2016, primarily in the U.S., and a compound annual growth rate (CAGR) of 54% in the last two years. The brand is on track to reach over 170,000 cases by the end of 2017.

In a press release, Diageo gave the founders credit for building “a brand that has thrived under their organic approach in reaching and expanding their house of friends”, and noted they will continue to promote the brand and provide their leadership and vision.

“We are delighted that the founders will have continued involvement and active participation in the future success of Casamigos,” Diageo added.

The transaction is expected to close in the second half of calendar 2017, subject to regulatory clearances. Diageo expects the transaction will not affect its earnings for the first three years and accretive thereafter. The acquisition will be economic profit positive in the fourth full fiscal year post-completion.

The acquisition will be funded through existing cash resources and debt.

MexicoNow

- Diageo expands Jalisco distillery as part of a US$ 400 million investment

- Mezcales de Leyenda adds two new products crafted in Puebla, San Luis Potosi