Diageo completes acquisition of Bushmills

26/08/05 Diageo has today announced the purchase of Bushmills, one of the world’s best-known Irish whiskey brands, from Pernod Ricard for approximately £200 million.  The acquisition of Bushmills is a significant move for Diageo into the Irish whiskey category, which is growing at +3.8% CAGR since 1998, with particularly strong growth in the USA.

Paul Walsh, Chief Executive of Diageo commented, ‘The acquisition of Bushmills is a particularly exciting opportunity. This is one of the industry’s oldest Irish whiskey brands and gives Diageo, for the first time, an important presence in this growing category.

‘Since 2000 Diageo has built a focused premium drinks company which is now a world leader. The business has grown organically and through targeted acquisitions and the Bushmills purchase continues this strategy.’

Diageo has a collection of brands with rich heritage such as Johnnie Walker, J&B, Smirnoff, Cuervo, Captain Morgan and Tanqueray.  The acquisition also adds to Diageo’s standing in the island of Ireland, where Bushmills will now join two of the most iconic Irish brands - Guinness and Baileys, also owned by Diageo.

Walsh continued, ‘We believe Bushmills has huge growth potential and are looking forward to utilising our marketing expertise and distribution capabilities to move this brand into the global whisk(e)y market.’

UBS Investment Bank acted as financial advisor to Diageo with Slaughter and May as legal advisor.

Diageo is the world's leading premium drinks business. With its global vision, and local marketing focus, Diageo brings to consumers an outstanding collection of beverage alcohol brands across the spirits, wine and beer categories including Smirnoff, Guinness, Johnnie Walker, Baileys, J&B, Cuervo, Captain Morgan and Tanqueray, and Beaulieu Vineyard and Sterling Vineyards wines. Diageo trades in some 180 markets around the world and is listed on both the New York Stock Exchange (DEO) and the London Stock Exchange (DGE).