Diageo to Buy Tequila Brand Casamigos

Diageo PLC (DGE.LN) said Wednesday it will acquire U.S. tequila brand Casamigos for $1 billion, as part of its international expansion plan and to increase presence in the tequila category.

The British alcoholic beverages company will pay an initial consideration of $700 million to acquire Casamigos and a further potential performance linked payment of $300 million.

Diageo said the deal will be earnings neutral for the first three years and accretive thereafter. The acquisition is expected to close in the second half of 2017 and will be funded from existing cash resources and debt, the company added.

Write to Tapan Panchal at tapan.panchal@wsj.com

(END) Dow Jones Newswires

June 21, 2017 12:40 ET (16:40 GMT)