Now that he's a father, George Clooney is getting out of the Tequila ownership business--twins don't pay for themselves, you know. Diageo is set to acquire his Casamigos tequila brand for a whopping $1 billion. (Not bad for a four-year-old company.)
Casamigos will initially be paid $700 million, with another $300 million to be tacked on when/if it meets performances goals over the next 10 years. The purchase strengthens Diageo's position in the high-end tequila category, per a release.
Casamigos was founded in 2013 by Rande Gerber, George Clooney and Mike Meldman. The brand hit the 120,000-case mark in 2016 and is on track to reach more than 170,000 cases by the end of 2017. Under the terms of the agreement, the founders will continue to promote the brand and provide leadership and vision.
"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," says Diageo chief Ivan Menezes.
The transaction is expected to close in the second half of the year, subject to regulatory clearances.
More to come after a media call with Diageo.
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