Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.
British Diageo, the world’s number one producer of spirits and beers, has decided to acquire not only Aviation Gin but also Davos Brands. In other words, its portfolio will also add Astral Tequila, Sombra Mezcal, and TYKU Sake.
The world’s largest drinks producer Diageo Plc (NYSE: DEO) acquires Aviation American Gin (or Aviation Gin), a famous gin maker co-owned by Hollywood actor Ryan Reynolds and Davos Brands. The sum of the deal totals $610 million. Initially, it will pay $335 million, with another $275 million based on sales over a 10-year period.
Aviation Gin is one of the most popular alcohol brands in the U.S. set up in 2006, it is the second-largest brand within the super-premium gin segment in the United States. The company is distributing its beverages nationwide in the United States and in 15 other countries, including Canada, Spain, the UK, Ireland, France, Russia, Italy, Germany, the Netherlands, and Australia.
In 2018, Holywood celebrity Ryan Reynolds acquired a stake in the brand. Since then, the brand had prospered. As the actor has said, Aviation Gin has been one of “the most fulfilling projects” he has ever taken part in. After the acquisition, Reynolds will retain an ongoing ownership interest in the brands. Besides, he will further make a significant contribution to make the brand’s “next chapter” exciting and fruitful.
What Plans Diageo Has for Aviation Gin
British Diageo, the world’s number one producer of spirits and beers, acquires not only Aviation Gin but also Davos Brands. In other words, its portfolio will also add Astral Tequila, Sombra Mezcal, and TYKU Sake.
Diageo CEO Ivan Menezes said:
“We are delighted to announce this transaction, which supports our participation in the super premium gin segment in the United States. The acquisition of Aviation American Gin and the Davos Brands portfolio is in line with our strategy to acquire high growth brands with attractive margins that support premiumisation.”
He further added:
“We are confident that Aviation American Gin will continue to shape and drive the growth of super premium gin in North America and we are looking forward to working with Ryan Reynolds and the Davos Brands team to accelerate future growth.”
According to the press release, the companies are planning to complete the acquisition by the end of 2020.
For Diageo, it is not the first acquisition of a brand owned by Hollywood celebrities. Back in 2017, it paid $1 billion to acquire the tequila brand Casamigos George Clooney co-founded. In addition, in 2007, Diageo also teamed up with music producer and rapper Sean “Diddy” Combs to sell Ciroc vodka.
Following the news, Diageo stock has grown. It closed with a 1.14% rise, $137.85 per share. Its market cap is $80.431 billion.
You can find more business news here.