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Diageo Plc has announced to sell Seagram’s VO whiskey and 18 other brands to closely held U.S. distiller Sazerac Co. for $550 million. According to the world’s largest distiller, the deal will help it develop faster-growing premium drinks in its U.S. portfolio.
The maker of Johnnie Walker, Diageo, is focused on higher-end labels as well as, is pushing new brands like George Clooney’s Casamigos tequila alongside its core whiskey and vodka lines. Diageo Chief Financial Officer Kathy Mikells said the sale is “just another example of what we’re doing to drive efficient growth as we focus on the premium and above segment.”
As per the company’s statement, the proceeding from the sale is expected to be about 340 million pounds ($438 million) after tax and transaction costs, which will be returned to Diageo investors through a share repurchase. The transaction which is expected to complete early next year is subject to regulatory approval.
Louisiana-based Sazerac, the owner of Buffalo Trace bourbon, will acquire other brands as well, which includes Romana Sambuca, Myers’s rum, Yukon Jack whiskey, Popov vodka and Goldschlager schnapps.
