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George Clooney Sells Tequila Company to Diageo for $1 Billion

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In a case that seems to prove the thesis that one must have money to make money, Hollywood mega-star George Clooney has reportedly sold his “Casamigos” tequila brand to liquor behemoth Diageo (DEO - Free Report) for a cool $1 billion.

According to CNBC, a source familiar with the matter confirmed the deal, and Clooney responded via email by saying that the buyout “reflects Diageo’s belief in our company and our belief in Diageo.”

“But we're not going anywhere. We'll still be very much a part of Casamigos. Starting with a shot tonight. Maybe two,” Clooney added.

CNBC also said that the deal will include an initial payment of $700 million, followed by a potential $300 million more based on the company’s performance over the next decade. The report indicated that the acquisition will close in the second half of this year.

Besides Clooney, Casamigos is owned by Rande Gerber, a founder of several nightlife companies, and Michael Meldman, a real estate mogul.

Diageo is one of the world’s largest alcoholic beverage companies, and it will add Casamigos to a liquor portfolio that includes Smirnoff, Johnnie Walker, J&B, Gordon’s, Malibu, and Baileys.

It’s been an interesting stretch for the tequila industry, which has watched consumer preference shift towards premium brands like Casamigos. Earlier this year, Jose Cuervo, the world’s largest tequila maker, debuted on the Mexican stock market after years of attempting to increase its premium choices in the U.S (also read: Tequila Maker Jose Cuervo Announces $1 Billion IPO).

Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!

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