Diageo Hires Bankers to Sell U.S.-Focused Spirits Brands

By Saabira Chaudhuri 

LONDON -- Diageo PLC has hired bankers to sell its Canadian whisky brand Seagrams VO and cinnamon schnapps brand Goldschlager among a number of U.S.-focused spirits brands, according to people familiar with the matter.

Diageo, the world's largest liquor maker, is also looking to unload other regional brands like Myers's rum, Popov vodka and Sambuca brand Romana, according to these people as it looks to tighten its focus on pricier, international brands that are seeing stronger growth.

Centerview Partners has been hired to sell the portfolio, which could bring in proceeds of up to $1 billion and will include several more brands.

Sky News reported on Diageo's move earlier Thursday.

Diageo's shares were up 1.6% in afternoon trading in London.

Under Chief Executive Ivan Menezes, Diageo -- which also owns Smirnoff vodka, Johnnie Walker scotch whisky and Tanqueray gin -- has been focused on shedding assets it deems noncore. In recent years it has sold Scottish hotel and golf resort Gleneagles and Diageo's wine portfolio.

The process to find buyers kicked off only this week but the company is hoping to sell the brands in a single transaction, meaning likely buyers will include private-equity firms, according to one of the people.

"We regularly review our portfolio to ensure we are maximizing shareholder value," said a Diageo spokeswoman.

Write to Saabira Chaudhuri at [e-mail]

(END) Dow Jones Newswires

May 24, 2018 08:49 ET (12:49 GMT)

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