Diageo paying up to $1 billion for George Clooney’s tequila company Casamigos

Diageo, the British adult beverage giant whose North American headquarters are in Norwalk, has agreed to acquire George Clooney’s high-end tequila brand Casamigos for up to $1 billion.

The company said it would pay $700 million initially for the company, potentially followed by another $300 million depending on Casamigos”™ sales performance over the next 10 years.

Casamigos was founded in 2013 by Clooney, entrepreneur Rande Gerber, who is married to model Cindy Crawford, and real estate developer Mike Meldman. Diageo said they will continue to promote the brand.

According to data tracker IWSR, tequila sales in the U.S. grew by 7.4 percent in 2016, selling a record 16.3 million cases and earning a 7.5 percent share of overall spirits ”“ easily outpacing all other varieties.

Casamigos sold 120,000 cases in 2016, primarily in the United States, and is on track to reach over 170,000 by the end of this year, according to Diageo, which added that it expects to expand the brand to Europe later this year.

The brand retails for about $50 per bottle, roughly the same as Diageo’s Don Julio tequila.

The Casamigos deal is expected to close in the second half of the year.