Diageo to buy George Clooney's Casamigos tequila for up to $1 billion
According to Reuters, Diageo Plc has agreed to buy George Clooney’s high-end tequila brand Casamigos for up to $1 billion.
According to Reuters, Diageo Plc has agreed to buy George Clooney’s high-end tequila brand Casamigos for up to $1 billion. Diageo said it would pay $700 million initially for the company with potential payment of a further $300 million linked to performance over 10 years.
Casamigos, which means “house of friends,” was founded in 2013 by Clooney and his friends— nightlife entrepreneur Rande Gerber, who is married to model Cindy Crawford, and real estate developer Mike Meldman. They will continue to promote the brand. The tequila sells for $45–$55 per bottle and sales have grown 54% over the past two years,
Diageo said Casamigos would be neutral to earnings for the first three years and add to earnings thereafter. The deal is expected to close in second half of the year.