Spirits giant Diageo has completed its acquisition of George Clooney’s Casamigos Tequila brand, strengthening its position in the super-premium category.
Under the deal, which was signed on 21 June 2017, Diageo initially paid $700m up front for Casamigos and agreed to pay a further $300m depending upon its performance over the next 10 years.
Casamigos was co-founded in 2013 by Rande Gerber, George Clooney and Mike Meldman.
The tequila company has produced around 1,20,000 cases of Tequila in 2016 in US including a CAGR of 54% in the last two years. It is on track to deliver over 1,70,000 cases by the end of this year.
Casamigos has become the fourth brand in Diageo’s tequila portfolio which includes Don Julio, DeLeón, and Peligroso.
Diageo North America president Deirdre Mahlan said: “We are excited to work alongside the founders Rande Gerber, George Clooney, and Mike Meldman as we continue to grow the brand.”
Diageo said that it is expecting the transaction will be EPS neutral for the first three years and accretive thereafter.
Global beverage alcohol manufacturer Diageo delivers its products in more than 180 countries across the world.
Its collection of brands in spirits, beer and wine categories include Johnnie Walker, Crown Royal, J&B, Buchanan’s and Windsor whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Tanqueray and Guinness.
