FDBusiness.com

Diageo has agreed the sale of nineteen brands to Sazerac, the US-based alcoholic beverages company, for an aggregate consideration of $550 million. The net proceeds of approximately £340 million, after tax and transaction costs, will be returned to shareholders through a share repurchase following completion, which will be incremental to the previously announced programme of up to £2 billion.

The brands being sold are Seagram’s VO, Seagram’s 83, Seagram’s Five Star, Myers’s, Parrot Bay, Romana Sambuca, Popov, Yukon Jack, Goldschlager, Stirrings, The Club, Scoresby, Black Haus, Peligroso, Relska, Grind, Piehole, Booth’s and John Begg. The transaction, which is subject to regulatory approval, is expected to complete early in 2019.

Ivan Menezes (pictured), chief executive of Diageo, says: “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 maximise returns over time.” He adds: “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.”