Diageo Holdings Plc, the world’s largest spirits maker has completed the acquisition of Aviation American Gin and its parent company Davos brands, co-owned by Hollywood star actor Ryan Reynolds.
This disclosure is contained in a press release by the company, which was seen by Nairametrics.
The acquisition of Aviation Gin LLC and its parent company, Davos Brands LLC, cements Diageo as the world’s largest gin brand in the world.
The total consideration of the acquisition is put at $610 million, which includes an initial payment of $335 million and a further potential consideration of up to $275 million, based on the performance of Aviation American Gin over a ten-year period. This, however, reflects the brand’s current growth trajectory and expected upside potential.
The Management of Diageo Holdings Plc, said that the acquisition supports the company’s participation in the super-premium gin segment in the US, and is in line with the company’s strategy to acquire “high growth brands with attractive margins,” which supports its premiumization ambitions.
Ivan Menezes, Chief Executive officer of Diageo said; “We are confident that Aviation American Gin will continue to shape and drive the growth of super-premium gin in North America, and we are looking forward to working with Ryan Reynolds and the Davos Brands team to accelerate future growth.”
Aviation American Gin is an American style gin crafted with a blend of botanicals, with subtle juniper notes, delivering a smooth balanced flavor profile. The brand has thrived under the leadership of its majority owner, Davos Brands, and the creative direction of co-owner Ryan Reynolds, who will retain an ongoing ownership interest in Aviation American Gin.
Through this acquisition, Diageo is also acquiring the other brands in the Davos Brands’ portfolio, consisting of Astral Tequila, Sombra Mezcal, and TYKU Sake.
Fact: Diageo Overseas Holdings Limited, is the parent organization of Guinness Overseas Limited. Guinness Overseas Limited, as of 30 June 2020, owned 50.18% of the issued share capital of Guinness Nigeria Plc.