Ryan Reynolds-backed Aviation American Gin to be bought by drinks giant Diageo
Guinness maker Diageo has agreed buy Aviation American Gin which is co-owned by Hollywood actor Ryan Reynolds, as part of a deal worth up to $610 million.
The FTSE 100 drinks firm will buy the brand through the acquisition of Aviation Gin LLC and Davos Brands LLC ('Davos Brands').
Aviation American Gin is a premium US gin which costs around £31-£35 per 700 ml bottle in the UK.
Diageo, which is also behind brands such as Gordon's and Baileys said Aviation American Gin has grown under the leadership of its majority owner, Davos Brands, and the creative direction of co-owner Reynolds, who will retain an ongoing ownership interest in Aviation American Gin.
Reynolds, who has starred in Deadpool and Green Lantern, said: "A little over two years ago, I became an owner of Aviation Gin because I love the taste of Aviation more than any other spirit. What I didn't expect was the sheer creative joy learning a new industry would bring. Growing the brand with my company, Maximum Effort Marketing, has been among the most fulfilling projects I've ever been involved with."
He added: "I want to thank Diageo for their incredible team and passion. We're so excited for the next chapter of Aviation Gin, which, I promise, will require just as little reading."
Diageo’s chief executive Ivan Menezes said the purchase is in line with the firm’s strategy “to acquire high growth brands with attractive margins that support premiumisation”.
As part of the deal, Diageo is also acquiring the other brands in the Davos Brands' portfolio including Astral Tequila, Sombra Mezcal and TYKU Sake.
The total consideration is up to $610 million, which includes an initial payment of $335 million and a further potential consideration of up to $275 million based on the performance of Aviation American Gin over a ten- year period.
Diageo said the acquisition will be funded through existing cash and is expected to close before the end of 2020, subject to regulatory clearances.
