Diageo completes $550m sale of 19 brands to Sazerac

Diageo confirmed the completion of the sale of a portfolio of 19 brands to Sazerac on Friday, as it first announced on 12 November.

The FTSE 100 distilling giant agreed the sale with Sazerac for an aggregate consideration of $550m.

It said the net proceeds of about £340m, after tax and transaction costs, would be returned to shareholders through a share repurchase following completion.

That return would be incremental to its previously-announced repurchase programme of up to £2bn.

“Diageo has a clear strategy to deliver consistent efficient growth and value creation for our shareholders,” said chief executive officer Ivan Menezes at the time of the initial announcement.

“This includes a disciplined approach to allocating resources and capital to ensure we maximise returns over time.

“The disposal of these brands enables us to have even greater focus on the faster growing premium and above brands in the US spirits portfolio.”