Diageo sells 19 beverage brands to Sazerac for $550 million
Diageo has agreed to sell 19 of its beverage brands to Sazerac for $550 million. The brands included in the transaction are Seagram’s VO, Seagram’s 83, Seagram’s Five Star, Myers’s, Parrot Bay, Romana Sambuca, Popov, Yukon Jack, Goldschlager, Stirrings, The Club, Scoresby, Black Haus, Peligroso, Relska, Grind, Piehole, Booth’s, and John Begg.
Diageo has agreed to sell 19 of its beverage brands to Sazerac for $550 million. The brands included in the transaction are Seagram’s VO, Seagram’s 83, Seagram’s Five Star, Myers’s, Parrot Bay, Romana Sambuca, Popov, Yukon Jack, Goldschlager, Stirrings, The Club, Scoresby, Black Haus, Peligroso, Relska, Grind, Piehole, Booth’s, and John Begg. The transaction, which is subject to regulatory approval, is expected to be finalized in early 2019.
The net proceeds of approximately £340 million (about $436 million), after tax and transaction costs, will be returned to shareholders through a share repurchase following completion, which will be incremental to the previously announced program of up to £2 billion.
“Diageo has a clear strategy to deliver consistent efficient growth and value creation for our shareholders,” said Ivan Menezes, chief executive of Diageo. “This includes a disciplined approach to allocating resources and capital to ensure we maximize returns over time. Today’s announcement is another example of this strategy in action. The disposal of these brands enables us to have even greater focus on the faster growing premium and above brands in the U.S. spirits portfolio.”