Diageo Hires Bankers to Sell U.S.-Focused Spirits Brands
24 May 2018 - 11:04PM
Dow Jones News
By Saabira Chaudhuri
LONDON -- Diageo PLC has hired bankers to sell its Canadian
whisky brand Seagrams VO and cinnamon schnapps brand Goldschlager
among a number of U.S.-focused spirits brands, according to people
familiar with the matter.
Diageo, the world's largest liquor maker, is also looking to
unload other regional brands like Myers's rum, Popov vodka and
Sambuca brand Romana, according to these people as it looks to
tighten its focus on pricier, international brands that are seeing
stronger growth.
Centerview Partners has been hired to sell the portfolio, which
could bring in proceeds of up to $1 billion and will include
several more brands.
Sky News reported on Diageo's move earlier Thursday.
Diageo's shares were up 1.6% in afternoon trading in London.
Under Chief Executive Ivan Menezes, Diageo -- which also owns
Smirnoff vodka, Johnnie Walker scotch whisky and Tanqueray gin --
has been focused on shedding assets it deems noncore. In recent
years it has sold Scottish hotel and golf resort Gleneagles and
Diageo's wine portfolio.
The process to find buyers kicked off only this week but the
company is hoping to sell the brands in a single transaction,
meaning likely buyers will include private-equity firms, according
to one of the people.
"We regularly review our portfolio to ensure we are maximizing
shareholder value," said a Diageo spokeswoman.
Write to Saabira Chaudhuri at saabira.chaudhuri@wsj.com
(END) Dow Jones Newswires
May 24, 2018 08:49 ET (12:49 GMT)
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