Diageo sells Windsor whisky for $163m
Diageo has sold its Windsor blended Scotch whisky brand, including the W series, to a private South Korean equity group for KRW200 billion (US$163m/£124m).
By Alice Brooker
The sale of the Windsor brand to the South Korea-based Bayside Private Equity and Metis Private Equity (Bayside/Metis) consortium is said to have no material impact on earnings per share in Diageo’s 2022 fiscal year.
The deal is expected to be completed in fiscal 2023.
Sam Fischer, president of Asia Pacific and global travel for Diageo, said: “This transaction marks the next chapter for Diageo Korea. We remain fully committed to the market and further developing our international spirits and beer business, which is being driven by premiumisation and consumer interest in categories like international whisky.
“We take a disciplined approach to capital allocation and this sale is very much in line with our track-record of active portfolio management.
“We are grateful to our Diageo Korea employees for all their dedication and support of the Windsor business and we will work with them, the Union, our valued customers and partners, and Bayside/Metis to ensure a smooth transition.”
As part of the sale, Diageo will provide Scotch whisky to Bayside/Metis under a 10-year supply agreement.
Bum Jun Kim, CEO of Bayside Private Equity for Bayside/Metis, said: “Windsor is an important addition to our investment portfolio and allows us to participate in the dynamic Korean beverage alcohol market.
“We are confident that we can build on the innovation of Windsor and unlock further potential. We will work closely with Diageo to ensure a smooth transition over the next few months.”
Earlier this month, Diageo gained a minority stake in Nao Spirits, producer of gins Greater Than and Hapusa, for INR31.5 crores (US$4.1m).