Diageo has announced that it has reached an agreement to acquire Aviation American Gin through the acquisition of Aviation Gin LLC and Davos Brands LLC.
Diageo is also acquiring Davos Brands' Astral Tequila, Sombra Mezcal and TYKU Sake brands through the acquisition.
The transaction's total consideration is up to $610 million, which includes an initial payment of $335 million and a further potential consideration of up to $275 million based on the performance of Aviation American Gin over a ten-year period.
"Delighted"
Diageo chief executive Ivan Menezes stated, "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. 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."
"Excited For The Next Chapter"
Meanwhile, Aviation American Gin co-owner and Hollywood star Ryan Reynolds commented, "A little over two years ago, I became an owner of Aviation Gin because I love the taste of Aviation more than any other spirit. What I didn't expect was the sheer creative joy learning a new industry would bring. Growing the brand with my company, Maximum Effort Marketing, has been among the most fulfilling projects I've ever been involved with. I want to thank Diageo for their incredible team and passion. We're so excited for the next chapter of Aviation Gin, which, I promise, will require just as little reading."
"The Sky Is Truly The Limit"
Davos Brands co-founder and CEO Andrew T. Chrisomalis added, "Brands are an evolution, reflecting the vision and values of their founders, sculptors and stewards. Extraordinary partnership and teamwork brought us here, and with the continued creative genius of Ryan Reynolds and this new best-in-class global partnership with Diageo, the sky is truly the limit for Aviation American Gin and Davos Brands."
The acquisition will be funded through existing cash and is expected to close before the end of 2020, subject to regulatory clearances.
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