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Bids, Mergers and Takeovers

Diageo to acquire super-premium tequila Casamigos

22 June 2017 07:25

Diageo has entered into a definitive agreement to acquire Casamigos, the fastest growing super-premium tequila brand in the US.

Diageo said this was an exciting opportunity for the group to strengthen its participation in the fast growing tequila category, as well as expand the brand internationally.

It said the transaction valued Casamigos at up to $1bn, with initial consideration set at $700m and a further potential $300m based on a performance linked earn-out over 10 years which reflected the brand's exceptional growth trajectory and upside potential.

Diageo said acquisition would be funded through existing cash resources and debt.

Chief executive Ivan Menezes said "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 capitalise on the significant international potential of the brand.

"We look forward to building on the remarkable success of Casamigos to date."

Story provided by StockMarketWire.com

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