Diageo to Buy Tequila Brand Casamigos
June 21 2017 - 12:55PM
Dow Jones News
By Tapan Panchal
LONDON--Diageo PLC (DGE.LN) said Wednesday it will acquire U.S.
tequila brand Casamigos for $1 billion, as part of its
international expansion plan and to increase presence in the
tequila category.
The British alcoholic beverages company will pay an initial
consideration of $700 million to acquire Casamigos and a further
potential performance linked payment of $300 million.
Diageo said the deal will be earnings neutral for the first
three years and accretive thereafter. The acquisition is expected
to close in the second half of 2017 and will be funded from
existing cash resources and debt, the company added.
Write to Tapan Panchal at tapan.panchal@wsj.com
(END) Dow Jones Newswires
June 21, 2017 12:40 ET (16:40 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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