Diageo to buy Aviation Gin and Davos Brands for up to $610m

Drinks giant Diageo has agreed to buy Aviation American Gin through the acquisition of Aviation Gin and Davos Brands for up to $610m.

Aviation American Gin is majority owned by Davos brands and also partly owned by Hollywood actor Ryan Reynolds.

Through the acquisition, Diageo is also acquiring the other brands in the Davos Brands' portfolio consisting of Astral Tequila, Sombra Mezcal and TYKU Sake.

The purchase prices includes an initial payment of $335m and a further potential payment of up to $275m based on the performance of Aviation American Gin over a 10-year year period.

Diageo chief executive Ivan Menezes said: "We are delighted to announce this transaction, which supports our participation in the super premium gin segment in the United States. The acquisition of Aviation American Gin and the Davos Brands portfolio is in line with our strategy to acquire high growth brands with attractive margins that support premiumisation.

"We are confident that Aviation American Gin will continue to shape and drive the growth of super premium gin in North America and we are looking forward to working with Ryan Reynolds and the Davos Brands team to accelerate future growth."