Diageo sells 19 brands to the US Sazerac factory :: Investor

Photo: Reuters

The British giant in the production of premium alcoholic beverage Diageo sold a portfolio of 19 brands of the Sazerac US company for $ 550 million (£ 427 million).

This list includes three types of whiskey Seagram, Romana Sambuca, and gin Booth brands, BBC reports.

Diageo shows that sales will allow the company to focus on its premium brands in the US.

The outcome of the transaction, which is expected to be around 340 million pounds, will be returned to shareholders in the form of share repurchases, the manufacturer said.

Booth in the past enjoyed popularity in the UK but production was stopped in 2017. Currently, vintage bottles from the brands of the 1960s and 1970s can be found at prices up to £ 250.

Sazerac is one of the oldest family distilleries, operating in 10 countries, including in a number of other countries such as the United Kingdom, Ireland, France, India, Australia and Canada.

Diageo, whose portfolio includes brands such as Guinness, Smirnoff and Johnnie Walker, also reported that they had agreed to sign a 10-year supply agreement with Sazerac. The Chief Executive Officer of the British company, Ivan Menesse, said that "Diageo has a clear strategy to achieve consistent, effective growth and value creation for our shareholders."

The agreement awaits regulatory approval and is expected to be completed by early 2019.