The spirits producer will pay £552.8M ($700M) now for the company and a further £236.9M ($300M) over a 10-year period, dependent upon its performance.
Diageo predicted the sale to close in the second half of this year, subject to regulatory clearances.
Diageo chief executive Ivan Menezes said the acquisition supported the company’s strategy to focus on the high-growth, “super-premium” and above segments of the tequila category.
‘International potential of the brand’
“With the global strength of Diageo, we expect to expand the reach of Casamigos to markets beyond the US to capitalise on the significant international potential of the brand,” he said. “We look forward to building on the remarkable success of Casamigos to date.”
Casamigos, founded four years ago by Clooney and friends Rande Gerber and Mike Meldman, is the fastest growing premium tequila brand in the UK, according to Diageo.
The company sold 120,000 cases of the tequila last year, mainly in the US, and had a compound annual growth rate of 54% in the last two years. The brand is on track to sell over 170,000 cases by the end of this year.
Founders Clooney, Gerber and Meldman are to stay with the company after its sale to advise Diageo and promote the brand.
‘Most respected spirits companies’
Gerber said: “We are extremely excited to team up with one of the largest, most respected spirits companies in the world.
“Casamigos has always been brought to you by those who drink it and we look forward to continuing that, working alongside the expertise and global reach of Diageo. Now even more people will be able to enjoy and experience our love and passion for Casamigos.”
Meanwhile, Diageo saw its operating profit grow 28% to £2.06bn in the second half of last year, boosted by improve performance in the US.
Diageo’s acquisition of Casamigos – at a glance
- Deal worth £790M ($1bn)
- Expected to complete in the second half of this year
- Founders George Clooney, Rande Gerber and Mike Meldman will stay with the brand to advise Diageo
- Casamigos sold 120,000 cases of tequila last year