Diageo, an alcohol company that owns a list of brands including Guinness, Johnnie Walker and Captain Morgan, has agreed to acquire Casamigos, a premium tequila brand. Casamigos was created in 2013 by George Clooney, Michael Meldman and Rande Gerber. The transaction values Casamigos at up to $1 billion in a deal comprising $700 million up front and another $300 million based on a performance-linked earnout over 10 years.
Through the deal, Diageo has secured a complementary brand to Don Julio, its other tequila label, with plans to expand the footprint for Casamigos beyond the US. Casamigos has delivered on its growth promises, reaching a compound annual growth rate of 54% in the last two years primarily on sales within the US. Casamigos is on track to sell more than 170,000 cases of tequila by the end of 2017 for a YoY uptick of 17%.
At this year's SALT New York conference, Wences Casares, the chairman of XAPO, and Peter Briger, the principal and co-chief executive officer of Fortress Investment Group discussed the macro case for Bitcoin. Q2 2021 hedge fund letters, conferences and more XAPO describes itself as the first digital bank of its kind, which offers the "convenience" Read More
Although corporate acquirers like Diageo have made more and more beverage deals with each passing year since 2013, reaching a new high of 110 last year, this year has booked just 35 completed acquisitions in the space, per the PitchBook Platform. Last year’s total includes ABInBev’s industry-realigning takeover of SABMiller. Late last month, Campari put its Irish Mist whiskey and Carolans Irish cream brands up for sale.
Article by PitchBook