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Diageo Purchases George Clooney’s Casamigos Tequila in $1 Billion Deal

 Breaking News
June 23
08:39 2017

(CNBC.comGeorge Clooney is selling his tequila company Casamigos to Diageo for as much as $1 billion, the company said Wednesday.

“If you asked us four years ago if we had a billion dollar company, I don’t think we would have said yes,” Clooney told CNBC via email. “This reflects Diageo’s belief in our company and our belief in Diageo. But we’re not going anywhere. We’ll still be very much a part of Casamigos. Starting with a shot tonight. Maybe two.”

Diageo said it will initially pay $700 million, with the potential for another $300 million based on the tequila’s performance over 10 years. The transaction is expected to close during the second half of 2017.

 george clooney

Diageo doesn’t expect the deal to add to its earnings until its fourth year. In the first three years, the brand will not have any impact on earnings

Clooney and co-owners Rande Gerber and Michael Meldman are expected to stay with the company after its acquisition.

Gerber founded nightlife companies Midnight Oil and the Gerber Group, and Meldman is a real estate tycoon.

Casamigos, which translates to “house of friends,” started as a private collection of tequilas meant just for Gerber and Clooney’s friends and family. However, in 2013, the team brought the label public when they had to get licensed to continue making the tequila.

“It immediately took off,” Gerber told CNBC in November. “Right now, we’re the fastest growing ultra-premium tequila in the country.”

— CNBC’s Jen Zweben contributed to this report.

 

 

 

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Video Credit: YouTube / E! News
Image Credit: Business Insider / Casamigos Tequila

 

 

Industry Expert

Charlie McCarthy

Charlie McCarthy

A seasoned veteran of the international drinks scene, our Managing Editor, has spent the last decade opening new venues across the globe, consulting for key drinks industry groups, running A-list parties, and advising major spirit and beverage brands. Through his work with All About The Cocktail, Charlie has become a respected figure in on-line, televised and print media for the global drinks industry. If it involves making drinks, chatting about drinks, thinking about drinks, writing about drinking, or drinking drinks, Charlie has been 'biting that bullet' since 2000.

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