Diageo: to sell 19 brands to focus on US premium market

(CercleFinance.com) - Diageo is selling nineteen brands, including Seagram's whiskies, to focus on its faster growing premium brands in the US, the company said in a statement Monday.


The British spirits maker has agreed to sell the nineteen brands to US bourbon maker Sazerac for a total of 550 million dollars. After tax and transaction costs, the net proceeds will reach approximately 340 million pounds.

The amount will be returned to shareholders through a share repurchase after the deal's completion, which will be add up to 2 billion pounds the previously announced program, Diageo said.

The brands included in the deal are Seagram's VO, Seagram's 83, Seagram's Five Star, Parrot Bay, Romana Sambuca, and John Begg, amongst others.

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