The U.S. tequila brand, Casamigos, which was co-founded by George Clooney, will be sold to Diageo Plc (NYSE: DEO) for $1 billion dollars.
Clooney and his partners, Rande Gerber and Michael Meldman, founded the company on a whim. In a Business Insider interview, Gerber said, "Casamigos really started by accident as far as a company. As you do in Mexico, we would drink a lot of tequila. We'd go out to bars and restaurants and bartenders would recommend them. Some were good, some not so good, and some expensive. There came a point where George turned to me and said, 'Why don't we create one that's perfect for us?"
Sold in 20 countries, Casamigos has become one of the fastest growing tequila brands and has doubled sales from 2014 and 2015. Diageo currently owns several others companies, including Don Julio, DeLeon, and Peligrosa. With this deal, the London based distiller has become one of the leaders in its industry.
Diageo Chief Executive Officer Ivan Menezes stated, “The purchase supports our strategy to focus on the high growth super-premium and above segments of the category. With the global strength of Diageo we expect to expand the reach of Casamigos to markets beyond the U.S. to capitalize on the significant international potential of the brand.”