The price tag includes an initial payout of $700 million, plus a further potential $300 million over the next decade based on the brand’s performance, according to Diageo. The deal is expected to close before year end, pending regulatory approval.
“If you asked us four years ago if we had a billion dollar company, I don’t think we would have said yes,” Clooney told CNBC. “But we’re not going anywhere. We’ll still be very much a part of Casamigos. Starting with a shot tonight. Maybe two.”
Founded in 2013 by actor and director Clooney, nightlife entrepreneur Rande Gerber and real estate tycoon Mike Meldman, the tequila initially began as a private selection for Gerber and Clooney’s acquaintances. But the pet project, which translates to “house of friends,” evolved into a legitimate business when they were forced to get a license to keep making the blue agave-derived drink.
For Clooney, the sale of their fast-growing company means a big payday: Sources tell FORBES the trio own equal stakes in Casamigos, which is not believed to have taken on outside investment prior to this acquisition.
The initial $700 million payout split three ways would mean up to $233 million pretax for Clooney. After Uncle Sam’s cut, he’ll be left with closer to $140 million, with the option to earn up to another $100 million before taxes in the next 10 years if the brand performs well.
According to a knowledgeable source, the trio put in $600,000 apiece as initial investment to start up Casamigos and reinvested profits, making the sale price a phenomenal ROI for its founders. The company is not thought to carry debts that would diminish their take-homes.
The acquisition marks the biggest celebrity beverage score to date. Coca-Cola’s $4.2 billion purchase of Vitaminwater maker Glaceau in 2007 yielded roughly $100 million for rapper 50 Cent, who owned a tiny slice of the beverage company. Three years later, Beam bought Real Housewife Bethenny Frankel’s SkinnyGirl for an estimated $100 million.
For Diageo, it won’t be its first foray into celebrity liquor: The London, U.K.-based company currently partners with Sean “Diddy” Combs on Ciroc vodka, which is to thank for a chunk of the rapper’s $820 million net worth. It also developed Pharrell Williams’ failed Q Qream liqueur.