Clooney sells his tequila brand to Diageo

Diageo Plc agreed to acquire the fast-growing tequila brand Casamigos, co-founded four years ago by Hollywood heartthrob George Clooney, for as much as USD 1 billion. The deal expands the London-based distiller’s lineup in a fast-growing category, where it already owns the Don Julio, DeLeon and Peligroso brands.

The purchase will be Diageo’s biggest since its $3.2 billion acquisition of United Spirits Limited in 2014. After that deal boosted its presence in India, the owner of the Smirnoff brand is moving to strengthen its US business, which has returned to growth after a difficult stretch following a slowdown in vodka sales. Meanwhile, tequila volume in the US more than doubled from 2002 through 2015, according to the Distilled Spirits Council.

Clooney created Casamigos in 2013 with developer Mike Meldman and entertainment entrepreneur Rande Gerber. They got in on the tequila boom after tasting together in Cabo San Lucas, Mexico, where Clooney and Gerber had built vacation homes.