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Diageo sells Seagram's and sambuca brands | Diageo sells Seagram's and sambuca brands |
(35 minutes later) | |
Drinks giant Diageo has announced that it is selling a portfolio of 19 brands to US privately owned firm Sazerac for $550m (£427m). | Drinks giant Diageo has announced that it is selling a portfolio of 19 brands to US privately owned firm Sazerac for $550m (£427m). |
The list includes three varieties of Seagram's whisky, plus Romana Sambuca and the now-defunct Booth's gin brand. | The list includes three varieties of Seagram's whisky, plus Romana Sambuca and the now-defunct Booth's gin brand. |
Diageo said the sale would allow it to have "greater focus" on its premium brands in the US. | Diageo said the sale would allow it to have "greater focus" on its premium brands in the US. |
The proceeds, expected to be about £340m, will be returned to shareholders through a share buyback, Diageo said. | The proceeds, expected to be about £340m, will be returned to shareholders through a share buyback, Diageo said. |
Booth's Gin used to be a well-known brand in the UK, but production ceased in 2017. Vintage bottles from the 1960s and 1970s are available for up to £250 from specialist retailers. | Booth's Gin used to be a well-known brand in the UK, but production ceased in 2017. Vintage bottles from the 1960s and 1970s are available for up to £250 from specialist retailers. |
Sazerac is one of the US's oldest family-owned distillers, with operations in 10 states, as well as international activities in the UK, Ireland, France, India, Australia and Canada. | Sazerac is one of the US's oldest family-owned distillers, with operations in 10 states, as well as international activities in the UK, Ireland, France, India, Australia and Canada. |
Diageo, which owns Guinness, Smirnoff vodka and Johnnie Walker whisky, also said it had agreed to enter into 10-year supply contracts with Sazerac for five of the drinks being sold. | |
Diageo chief executive Ivan Menezes said Diageo had "a clear strategy to deliver consistent efficient growth and value creation for our shareholders". | Diageo chief executive Ivan Menezes said Diageo had "a clear strategy to deliver consistent efficient growth and value creation for our shareholders". |
He added: "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." | He added: "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." |
The deal is subject to approval by regulators and is expected to complete in early 2019. | The deal is subject to approval by regulators and is expected to complete in early 2019. |
The full list of brands sold is: | The full list of brands sold is: |
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