Casamigos “On Track” to Meet Diageo Benchmarks

Dear Client:In 2017, Diageo purchased George Clooney's tequila brand, Casamigos, for a whopping $1 billion. There was a lot of "sticker shock and downright skepticism" over the price tag and Diageo's projection that the deal would reach its cost of capital by the fourth year of ownership. But turns out they're on track to do just that, according to a recent Bernstein note. You may recall, the terms of the deal were: Casamigos was initially paid $700 million, with another