Diageo begins sale process for spirits portfolio, Centerview Partners advising - report
25 MAY 2018
Diageo [LON:DGE], an FTSE-100 drinks company, has begun a sale process for a portfolio of spirits brands, Sky News reported on 24 May. The report cited a person close to Diageo who said the investment bank Centerview Partners is advising on the auction.
Diageo has begun talking to prospective buyers of the US-focused brands in the past few weeks, according to the report.
The brands put up for sale include Goldschlager, Myer’s Rum, Popov and Romana, the item said.
Insiders cited by the report said the potential disposals are non-core brands and that the portfolio is likely to sell for between USD 500m (EUR 570m) and USD 1bn.
The sale has already attracted interest from private equity groups, according to one of the insiders.
The report quoted a Diageo spokesperson, who said the company regularly looks at its portfolio with an eye to maximising value for shareholders.
One insider cited by the report suggested that confirmation of the sale preparations will come when Diageo reports its FY results in late July.
Diageo is itself the subject of persistent bid speculation, the item said, mentioning talk of a bid from a bigger rival or from a financial buyer. The report mentioned 3G Capital, which owns Kraft Heinz, as a potential buyer for Diageo.
Diageo’s market capitalisation stood at GBP 67.55bn (EUR 77.11bn) at the close of trading in London on Thursday, 24 May.
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