Diageo completes $1bn purchase of Clooney’s Tequila
Drinks giant Diageo has completed its US$1 billion acquisition of Tequila brand Casamigos, which was founded just four years ago by Hollywood heartthrob George Clooney and Rande Gerber.
The deal, announced in June, saw Diageo agree to pay $700 million up front for Casamigos and a further potential $300 million based on its performance over the next 10 years. Diageo forecasts that Casamigos will start earning money for the company after four years.
Casamigos is the fastest-growing super-premium tequila brand in the US, offering Diageo the opportunity to strengthen its presence within the growing Tequila category.
“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 of Diageo North America upon the completion of the deal this week.
Meaning “house of friends” in Spanish, Casamigos was found in 2013 by Clooney and his friends Rande Gerber and Mike Meldman. It started out as a pet project to enjoy with friends and family, but has grown to become a company worth $1 billion in just four years.
The brand produced 120,000 cases of Tequila last year and is on track to make 170,000 cases this year. All three owners are expected to keep an active role in the company once the sale goes through.
Casamigos is the fourth brand in Diageo’s Tequila portfolio, which also includes Don Julio, DeLeón, and Peligroso.