Dive Brief:
- Diageo has agreed to a deal that sees it lose control of legendary Irish whiskey brand Bushmills but gain full control of the Don Julio brand of tequila.
- Under the terms of the transaction, Diageo will sell Bushmills to Mexico's Casa Cuervo, a family-owned powerhouse in the global tequila business.
- In return, Diageo wins full ownership of the Don Julio brand, which it already owned a piece of following a failed takeover two years ago, plus $408 million in cash.
Dive Insight:
The investment community has been pretty pleased with this deal ever since the first hints appeared over the weekend. And it's not hard to see why: the transaction gives Diageo a bigger stake in a market it's investing in heavily and where the growth potential is considerable. It also stops Casa Cuervo's deal with Diageo to distribute Smirnoff in Mexico.
