Diageo Buys George Clooney’s Tequila Casamigos For $1 Billion

London: Diageo, the British maker of alcoholic drinks, said Wednesday it had agreed to buy Casamigos, an upscale tequila brand co-founded by Hollywood star George Clooney, in a deal worth up to $1 billion.

“This is an exciting opportunity for Diageo to strengthen its participation in the fast growing tequila category, as well as expand the brand internationally,” the company said in a statement.

It called Casamigos the fastest-growing super-premium tequila brand in the United States.

Casamigos has won numerous awards since it was created in 2013 by Clooney and two friends, and sales have climbed fast.

Diageo Buys George Clooney's Tequila Casamigos For $1 Billion

The tequila has promoted itself as “made by friends for friends”, and the founders plan to stay involved.

“Casamigos has always been brought to you by those who drink it and we look forward to continuing that, working alongside the expertise and global reach of Diageo,” said Casamigos Tequila Co-founder Rande Gerber.

Diageo said the deal includes an initial consideration of $700 million and up to another $300 million depending on performance over 10 years.

 

SpiceJet plans to buy 50 turboprop planes for $1.7 billion from Bombardier

No-frills airline SpiceJet on Tuesday announced plans to purchase 50 Q400 turboprop aircraft worth $1.7 billion (over Rs 10,900 crore) from Bombardier, a day after signing a pact for buying 40 Boeing 737 MAX planes.

SpiceJet, which has drawn up ambitious expansion plans, has signed a letter of intent with Bombardier Commercial Aircraft to buy up to 50 Q400 turboprop aircraft.

The letter of intent is for 25 Q400 turboprops and purchase rights for an additional 25 aircraft. These are 86- seater planes.

“Based on the Q400 turboprop list price, the order could be valued at up to $1.7 billion. This would be the single biggest order for the Q400,” SpiceJet said in a release.
SpiceJet

At the current exchange rate, the order will be worth over Rs 10,900 crore.

“I am delighted to announce this new order for 50 Q400 planes… This order will help us further increase connectivity to smaller towns and cities,” SpiceJet CMD Ajay Singh said.

The initial pact was signed at the ongoing Paris Air Show.

Civil aviation secretary RN Choubey said SpiceJet’s latest order will help further take forward the government’s vision to provide air connectivity to the common man.

Bombardier Commercial Aircraft president Fred Cromer said that once finalised, the repeat order will increase the Q400 aircraft fleet in the fast-growing market in the Asia-Pacific region and launch the high-density 86-passenger model of the Q400 aircraft in India.

SpiceJet operates a fleet of 35 737s and 20 Q400s.

Since 2010, the airline has taken delivery of 15 Q400 aircraft.

“The airline currently operates 20 Q400 aircraft in a 78 -seat configuration to domestic and international destinations.

“When concluded, this fleet expansion will provide SpiceJet the ability to grow profitably and leverage the robust demand forecast in the world’s fastest growing regional aviation market,” the release said.

On Monday, SpiceJet had inked an initial pact with Boeing Co for 40 737 MAX planes worth $4.7 billion.

 

Amazon to buy upmarket grocer Whole Foods for $13.7 billion

Amazon.com Inc said on Friday it would buy U.S. organic supermarket chain Whole Foods Market Inc for $13.7 billion, including debt, marking the internet retailer’s largest deal and biggest foray into the brick-and-mortar retail sector.

The deal, which puts a 27 percent premium on Whole Foods’ closing share price on Thursday, would could give the grocer a major competitive edge by allowing it to tap into Amazon’s massive power to buy and sell goods at a lower cost.

Whole Foods recently had come under pressure from activist hedge fund Jana Partners LLC, prompting it to overhaul its board.

Amazon

“I think that this takes all of the pressure off Whole Foods and gives Whole Foods the opportunity to revitalize that business and of course it stems the criticism from all of these activist investors,” said Neil Saunders, managing director of GlobalData Retail in New York.

The deal values Whole Foods at $42 per share. The shares were trading just under that level in early trading, while Amazon’s shares were up 0.9 percent at $997.41.

Excluding debt, the deal is valued at $13.39 billion, based on 318.9 million diluted shares outstanding as of April 9.

The grocer will continue to operate stores under the Whole Foods Market brand, the companies said.

John Mackey will continue as chief executive of Whole Foods, and the company’s headquarters will remain in Austin, Texas.

Amazon and Whole Foods expect to close the deal during the second half of 2017.

 

Amazon to Buy US Grocer Whole Foods Market for $13.7 Billion

Online juggernaut Amazon is buying Whole Foods in a deal valued at about $13.7 billion, a strong move to expand its growing reach into groceries.

Amazon.com Inc. will pay $42 per share for Whole Foods Market Inc., including debt. That marks an 18 percent premium to Whole Foods’ closing price on Thursday.

The deal comes a month after Whole Foods announced a board shake-up and cost-cutting plan amid falling sales. The grocery store operator was also under pressure from activist investor Jana Partners.

Amazon to Buy US Grocer Whole Foods Market for $13.7 Billion

The grocery chain, known for its organic options, had been facing increased pressure from rivals, including European grocery chain Lidl, which is planning to enter the East Coast market, along with Aldi and Trader Joe’s.
Amazon, meanwhile, has been expanding its reach in goods, services, and entertainment.

Whole Foods will keep operating stores under its name and John Mackey will as CEO, with headquarters in Austin, Texas.

The company, founded in 1978, has struggled to differentiate itself as competitors also now offer a plethora of fresh and organic foods, and has said customers may be choosing “good enough” alternatives closer to home. In addition to other natural and organic grocers, it has cited pressure from restaurant chains, meal-delivery companies and traditional supermarkets such as Kroger.

The deal is expected to close in the second half of 2017.