Diageo to acquire Davos Brands to gain ownership of Aviation American Gin
UK-based beverage alcohol giant Diageo will take ownership of Aviation American Gin by acquiring Aviation Gin and Davos Brands (collectively Davos Brands) in a deal worth up to $610 million.
The American style gin to be acquired by Diageo is said to be crafted with a mix of botanicals, with subtle juniper notes, to provide a smooth balanced flavor profile.
Aviation American Gin is claimed to have grown under the leadership of Davos Brands, its majority owner, and the creative direction of co-owner Ryan Reynolds, a Hollywood actor, who will retain an ongoing ownership stake in the brand.
As per IWSR, 2019, Aviation American Gin is the second largest brand within the super-premium gin segment in the US.
Through the acquisition, Diageo is also acquiring the other brands in the portfolio of Davos Brands, which include Astral Tequila, TYKU Sake, and Sombra Mezcal.
Diageo to acquire Davos Brands to gain ownership of Aviation American Gin, co-owned by Ryan Reynolds. Photo courtesy of Diageo.
Ivan Menezes – Chief Executive of Diageo, commenting on Diageo acquisition of Davos Brands, said: “We are delighted to announce this transaction, which supports our participation in the super premium gin segment in the United States. The acquisition of Aviation American Gin and the Davos Brands portfolio is in line with our strategy to acquire high growth brands with attractive margins that support premiumisation.
“We are confident that Aviation American Gin will continue to shape and drive the growth of super premium gin in North America and we are looking forward to working with Ryan Reynolds and the Davos Brands team to accelerate future growth.”
As per the terms of the deal, Diageo will make an initial payment of $335 million followed by an additional potential consideration of up to $275 million, which will depend on the sales of Aviation American Gin over a period of 10 years.
Commenting on Diageo acquisition of Davos Brands, Andrew T. Chrisomalis – Co-Founder and CEO of Davos Brands, said: “Brands are an evolution, reflecting the vision and values of their founders, sculptors and stewards.
“Extraordinary partnership and teamwork brought us here, and with the continued creative genius of Ryan Reynolds, and this new, best in class global partnership with Diageo, the sky is truly the limit for Aviation American Gin and Davos Brands.”
Diageo acquisition of Davos Brands, which is subject to regulatory approvals, is expected to close by the year-end.