Diageo completes Casamigos acquisitionBy Annie Hayes
Diageo has completed its acquisition of George Clooney’s Casamigos Tequila brand, strengthening the firm’s position in the super-premium category.
The spirits giant initially paid US$700m for Casamigos – and will potentially pay a further US$300m depending on the brand’s performance over the next 10 years.
Said to be the fastest growing super-premium Tequila in the US, Casamigos was founded in 2013 by actor George Clooney, Rande Gerber and Mike Meldman – who will have “continued involvement and active participation” in the brand.
Diageo will focus on expanding the presence of Casamigos in both its key US market and internationally. The firm expects the acquisition will be earnings per share (EPS) neutral for the first three years, and will be profitable in the fourth full fiscal year post-completion (2021).
“We are excited to work alongside the founders Rande Gerber, George Clooney, and Mike Meldman as we continue to grow the brand” said Deirdre Mahlan, president, Diageo North America.
Casamigos has become the fourth brand in Diageo’s Tequila portfolio, which also includes Don Julio, DeLeón, and Peligroso.
Speaking at a media briefing on 28 July, after the release of Diageo’s full-year results, chief financial officer Kathryn Mikells said there is no concern of ‘cannibalisation’ as the brand sits in “a very different space” to Don Julio.