‘Good Brands’
The $408 million will be received on completion, which is expected to be in early 2015, the U.K. company said.
Diageo shares were little changed at 1,841 pence as of 9:08 a.m. in London.
Don Julio is the market leader by value in ultra-premium tequila, which is the fastest-growing segment of the tequila category, according to Diageo. The brand’s sales advanced 27 percent last year in markets where Diageo has distribution.
Growth is unlikely to abate, Diageo Chief Financial Officer Deirdre Mahlan said on a conference call.
“We think that the growth rate for ultra-premium tequila is very strong,” Mahlan said. “When we look at this year and the future, we do think we’ll continue to get strong double-digit growth, not only in the strong markets, but as it continues to build on its strengths in the U.S. and Mexico.”
Bushmills had sales of 57 million pounds ($91 million) in the year ended June 30 and Don Julio had revenue of 105 million pounds, of which Diageo accounted for 75 million pounds.