Diageo Sells 19 Brands to Sazerac for $550 Million
12 Novembre 2018 - 8:49AM
Dow Jones News
By Ian Walker
Diageo PLC (DGE.LN) said Monday that it is selling 19 brands to
Sazerac for $550 million, which will be returned to shareholders
via a previously announced share-buyback program.
The drinks maker said it is selling 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. It
expects to receive 340 million pounds ($437.8 million) net from the
deal.
Diageo, which houses Smirnoff, Johnnie Walker and Guinness among
its brands, also said it has entered into 10-year supply contracts
with Sazerac for five of the brands.
The deal is subject to regulatory approval and expected to
complete early in 2019, Diageo said. It said the sale will reduce
adjusted earnings per share by 1.9 pence in the first year after
completion.
"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," said Chief Executive Ivan Menezes.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
November 12, 2018 02:34 ET (07:34 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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