Diageo sells 19 brands to Sazerac for $550m

Diageo on Monday said it was selling 19 brands, including Seagrams VO, to US firm Sazerac for $550m (£427m).

The net proceeds of around £340m, after tax and transaction costs, will be returned to shareholders through a share repurchase.

The transaction is expected to generate an exceptional gain on disposal of approximately £110m, Diageo said. It would also be .9 pence per share dilutive to pre-exceptional earnings per share in the first full financial year.

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.