George Clooney has another reason to smile, if he needed one, as he’s sold his Casamigos super-premium tequila brand to Diageo for $1 billion.
The move further shows the power of agave and the gobbling up of smaller tequila and mezcal brands by the big players.
Created in 2013 by Clooney, Rande Gerber and Mike Meldman, Casamigos sold 120,000 cases in the US last year. It’s expected to add another 50k to those sales figures in 2017.
The exact details of the transaction are slightly up in the air, but values put the brand at up to $1 billion, with initial consideration set at $700 million and a further potential $300 million based on a performance linked earn-out over 10 years. Ker-ching.
‘We are delighted to announce this transaction today to extend our participation in the tequila category,’ Ivan Menezes, chief executive of Diageo, said. ‘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 capitalise on the significant international potential of the brand. We look forward to building on the remarkable success of Casamigos to date.’
The transaction is expected to close in the second half of 2017, subject to regulatory clearances.