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Sullivan & Cromwell advises Diageo as it snaps up $1bn Casamigos tequila firm

Sullivan & Cromwell has advised as UK-headquartered alcoholic beverages company Diageo as it buys up tequila company Casamigos for $1bn.

The Malibu-headquartered Casamigos was founded by actor George Clooney alongside business partners Rande Gerber and Mike Meldman in 2013. The trio will receive $700m with a further potential $300m based on the performance of the company over the next 10 years.

Sullivan & Cromwell advised Diageo on the deal with a team including London-based competition partner Juan Rodriguez (pictured) and New York based partners Melissa Sawyer, Ronald Creamer, Matthew Friestedt and Steven Holley.

In 2011, Diageo turned to Sullivan & Cromwell as it paid $16.4m to settle following a probe by US regulator the Securities and Exchange Commission (SEC). The regulator was investigating claims that the company had paid $2.7m in bribes in exchange for sales and tax benefits. 

Casamigos is advised by US law firm Wilson Elser Moskowitz Adelman Dicker.