Diageo complete Ketel One deal
The US$900 million deal between Diageo and Ketel One owner, The Nolet Group, has been completed. The transaction, first announced in February this year, sees the formation of a new company owned by the two companies, which will have exclusive sales, marketing and distribution rights for the vodka brand.
The deal was originally set to be approved by the US Federal Trade Commission by the end of March, but a decision was delayed, pending more information. The transaction has since been approved, resulting in the new 50/50 company. The Nolet Group will continue to own its distillery in Holland, supplying the two vodkas in the Ketel One range to the new company, while Diageo will consolidate its financial results.
Nolet Group senior chairman, Carel Nolet, explained that the deal provides “sales, marketing and distribution expertise that will help us to build on our success and make Ketel One a truly global brand.”
For Diageo president and CEO in North America, Ivan Menezes, the 1.9 million case brand “enables us to offer our consumers another super-premium choice.”
Clinton Cawood 11/06/08