Diageo to Buy George Clooney’s Casamigos Tequila Brand for Up to $1 Bln Martinne Geller - Thomson Reuters
go to original June 22, 2017

What started out as a private hobby, became big business for George Clooney (L) and Rande Gerber (Getty Images)

Update: Investors Doubt George Clooney's Tequila Is Worth Its $1 Billion Offer (Forbes)

Diageo Plc has agreed to buy George Clooney's high-end tequila brand Casamigos in a deal valuing it at up to $1 billion, as the world's largest spirits maker seeks to boost its presence in a high-growth market.

Diageo said on Wednesday it would pay $700 million initially for the company, co-founded by the American actor, with potential payment of a further $300 million linked to performance over 10 years.

The deal comes two weeks after Pernod Ricard took a stake in mezcal maker Del Maguey, and highlights the opportunity companies see in Mexico's native spirits.

A new spate of high-end tequilas has helped the drink transcend its traditional image as a party beverage for young drinkers. Its sales rose 5.2 percent globally last year, according to data tracker IWSR, outperforming a spirits industry that edged up only 0.3 percent.

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.

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Related: George Clooney Accidentally Started a Tequila Company and Sold It for $1 Billion (Latin Post)

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