Diageo PLC Diageo Sells Portfolio of Brands (0160H)
November 12 2018 - 2:00AM
UK Regulatory
TIDMDGE
RNS Number : 0160H
Diageo PLC
12 November 2018
12(th) November 2018
Diageo sells portfolio of brands to Sazerac
Diageo has agreed the sale of nineteen brands in an agreement
with Sazerac for an aggregate consideration of $550 million. The
net proceeds of approximately GBP340 million, after tax and
transaction costs, will be returned to shareholders through a share
repurchase following completion, which will be incremental to the
previously announced programme of up to GBP2bn. The transaction,
which is subject to regulatory approval, is expected to complete
early in 2019.
Ivan Menezes, Chief Executive of Diageo, said: "Diageo has a
clear strategy to deliver consistent efficient growth and value
creation for our shareholders. This includes a disciplined approach
to allocating resources and capital to ensure we maximise returns
over time. Today's announcement is another example of this strategy
in action. 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."
Further Information
-- The brands included in the transaction are 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.
-- The transaction is approximately 1.9 pence per share dilutive
to pre-exceptional eps in the first full financial year.
-- The transaction is expected to generate an exceptional gain
on disposal of approximately GBP110m.
-- Diageo has also agreed to enter into long-term supply
contracts with Sazerac on completion for five of the brands each
for a period of ten years. Supply of all other brands will
transition to Sazerac within a one year period from completion.
-- Further details with respect to the execution of the
additional share repurchase will be made available following
completion of the transaction and aligned with the execution of the
remaining tranches of the previously announced programme of up to
GBP2bn.
ENDS
CONTACTS
Investor Relations: Pier Falcione +44 (0) 20 8978 4838
investor.relations@diageo.com
Media Relations: Jessica Rouleau +44 (0) 20 8978 1286
press@diageo.com
About Diageo
Diageo is a global leader in beverage alcohol with an
outstanding collection of brands across the spirits and beer
categories. These brands include Johnnie Walker, Crown Royal, J B,
Buchanan's and Windsor whiskies, Smirnoff, Cîroc and Ketel One
vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and
Guinness.
Diageo is a global company, and our products are sold in more
than 180 countries around the world. The company is listed on both
the London Stock Exchange (DGE) and the New York Stock Exchange
(DEO).
Celebrating life, every day, everywhere.
About Sazerac
Sazerac is one of America's oldest family owned, privately held
distillers with operations in the United States in Louisiana,
Kentucky, Indiana, Virginia, Tennessee, Maine, New Hampshire, South
Carolina, Maryland, California, and global operations in the United
Kingdom, Ireland, France, India, Australia and Canada. For more
information on Sazerac, please visit www.sazerac.com.
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END
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