While fine tequila may be the last thing one would associate Hollywood star George Clooney with, the superstar's venture into the business through the Casamigos Tequila marque has proven fruitful to say the least.
Recently, the star actor and his founding partners at the Casamigos Tequila brand inked a deal with UK-based global distilling giant Diageo Plc, allowing the conglomerate to acquire and induct the brand into its already vast and stellar line up.
Reports from within the industry states that Diageo will initially pay US$700 million for the brand before potentially paying a further US$300 million sum depending on the Casamigos brand's performance over the next decade. In all, this deal is potentially worth US$1 billion in total.
The transaction is expected to close in the second half of the 2017 pending regulatory clearances. With the acquisition, Diageo expects it's a neutral earnings per share (EPS) for the first three years before becoming profitable in the fourth full fiscal year post-completion (circa 2021).
With its induction, Casamigos Tequila becomes Diageo's fourth tequila brand it acquired over the years. It will join in on Diageo's ranks alongside other renowned tequila marques such as Don Julio, DeLeón, and Peligroso.
This was perhaps the perfect fairy tale outcome for actor Clooney and partners Rande Gerber and Mike Meldman who founded the Casamigos Tequila brand back in 2013. In 2016, the brand sold 120,000 cases and appears on track towards achieving its 170,000 cases sales goal for 2017.
Additionally, Diageo confirmed that the founders of Casamigos will have "continued involvement and active participation" in the future of the brand. In other words, George Clooney's involvement, and that of his aforementioned partners, hasn't ended just yet beyond this acquisition by the distilling giant.