Diageo to sell 19 brands to US-based Sazerac for 550 million dollars | Progresiv
Diageo Plc is selling 19 spirits brands, including Seagrams VO whisky and cinnamon schnapps Goldschlager, to U.S.-based company Sazerac for 550 million dollars as it looks to focus on premium brands. 
Sky News reported in May that the world's largest spirits company was in talks to sell some US-focused brands for overall price tag of between 500 million dollars and 1 billion dollars.
Diageo, the British maker of Johnnie Walker Scotch and Smirnoff vodka said, said it would return the net proceeds of about 340 million pounds to shareholders through a share repurchase.
The sale, which also includes whisky brands such as Seagram's 83, Seagram's Five Star and Myers's rum, will reduce Diageo's pre-exceptional earnings per share by 1.9 pence per share in the first full financial year after closing.
Diageo said it expects the sale to bring in a one-time gain of roughly 110 million pounds. The company has also agreed to long-term supply contracts with Louisiana, U.S.-based Sazerac. (www.esmmagazine.com)
