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Diageo to sell 19 brands to U.S.-based Sazerac for $550 million

Staff Writer |
Diageo has agreed the sale of nineteen brands in an agreement with Sazerac for an aggregate consideration of $550 million.

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The net proceeds of approximately £340 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 £2bn.

The transaction, which is subject to regulatory approval, is expected to complete early in 2019.

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 £110m.

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