Beverage industry master company Diageo is selling 19 of its brands to US based company Sazerac in $550 million deal. Reasoning for this is said to be that Diageo is increasing its focus on premium spirits.
This transaction is expected to take place in early 2019 and will net Diageo over $436 million after taxes and other costs.
Some of the brands that will be included in the sale are Meyer’s Rum, Romana Sambuca, Seagram’s VO, Seagram’s 83, and Seagram’s Five Star, Parrot Bay rum, Popov Vodka, Yukon Jack, Goldschläger, Stirrings mixer, Scoresby blended Scotch, Black Haus, Peligroso Tequila, Relska Vodka, Piehole whiskey, Booth’s gin and John Begg blended Scotch.
Ivan Menezes, chief executive of Diageo, said: “Diageo has a clear strategy to deliver consistent efficient growth and value creation for our shareholders.”
“This includes a disciplined approach to allocating resources and capital to ensure we maximize returns over time.”
“Today’s announcement is another example of this strategy in action. The disposal of these brands enables us to have even greater focus on the faster growing premium and above brands in the US spirits portfolio.”
Jake Wenz, Sazerac’s chief operating officer, added: “We are delighted to acquire these iconic brands from Diageo and are looking forward to working closely with our wholesalers and customers to provide the focus to maximize the full global potential of the brands.”
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