Diageo plc (LON:DGE) is selling 19 of its drinks brands, including some of its Seagram’s whiskeys and Parrot Bay rums, for US$550mln (£430mln) to Sazerac, the US-based firm behind Fireball Cinnamon Whisky.
Among the other brands included in the deal are Myers’s, Romana Sambuca, Goldschlager and Booth’s.
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“The disposal of these brands enables us to have an even greater focus on the faster-growing premium and above brands in the US spirits portfolio,” said chief executive Ivan Menezes.
FTSE 100-listed Diageo will return the £340mln or so of net proceeds to shareholders through a share repurchase following completion, which is expected to be early next year.
It has agreed to enter into long-term supply contracts with Sazerac for five of the brands each for a period of ten years.
Supply of all other brands will transition to Sazerac within a one-year period from completion.
Shares edged up 0.3% to 2,753p.