George Clooney sells his tequila business for $1bn
- Author: Zachary Reyes Jun 21, 2017,
Jun 21, 2017, 21:04
The deal is expected to go through by the end of this year.
The idea behind Casamigos, the brainchild of Clooney and his two friends, Rande Gerber (Cindy Crawford's husband), and Michael Meldman, was born when Clooney and Gerber bought neighboring properties in Mexico and got into drinking tequila. "We look forward to building on the remarkable success of Casamigos to date", said Diageo Chief Executive Ivan Menezes.
George Clooney's Tequila brand has struck a deal for a buyer. With the global strength of Diageo we expect to expand the reach of Casamigos to markets beyond the USA to capitalise on the significant worldwide potential of the brand.
WATCH: George and Amal Clooney Welcome Twins!
Diageo confirmed that the founders of Casamigos will have "continued involvement and active participation" in the future of the brand.
"Since inception Casamigos has received numerous awards and accolades from tequila experts, taste makers and influencers across the U.S.", said Diageo in a regulatory statement released after the London close. Mahlan said Diageo purposefully structured the transaction with an earn-out that means $300 million won't be paid unless the brand lives up to its potential. "So much of this depends on their belief in the growth rate of this brand". Diageo owns brands like Don Julio, Smirnoff, Captain Morgan, Johnny Walker and Guinness.