Guinness-maker Diageo has agreed to sell its blended Scotch whisky, Windsor – including the W series – to South Korean-based private-equity group Bayside Private Equity and the Metis private-equity consortium for a total cost of KRW 200 billion (€150 million).
The transaction will have no material impact on earnings per share in the 2022 fiscal year, the spirits giant added.
At the completion of the transaction, which is expected in 2023, an exceptional cumulative foreign-exchange translation gain will be recycled to the income statement.
The agreement will see Diageo supplying Scotch whisky to the Bayside-Metis group under a ten-year supply agreement.
‘Next Chapter For Diageo Korea’
Commenting on the deal, Sam Fischer, president of Asia-Pacific and global travel for Diageo, said, “This transaction marks the next chapter for Diageo Korea. We remain fully committed to the market and further developing our international spirits and beer business, which is being driven by premiumisation and consumer interest in categories like international whiskey. We take a disciplined approach to capital allocation, and this sale is very much in line with our track record of active portfolio management.
“We are grateful to our Diageo Korea employees for all their dedication and support of the Windsor business, and we will work with them, the union, our valued customers and partners, and Bayside-Metis to ensure a smooth transition,” Fischer added.
Read More: Diageo Sees First-Half Sales Raised By High-End Spirits
Bum Jun Kim, CEO of Bayside Private Equity for Bayside-Metis, said, “Windsor is an important addition to our investment portfolio and allows us to participate in the dynamic Korean […] alcohol market.
“We are confident that we can build on the innovation of Windsor and unlock further potential. We will work closely with Diageo to ensure a smooth transition over the next few months.”
© 2022 European Supermarket Magazine – your source for the latest drinks news. Article by Conor Farrelly. Click subscribe to sign up to ESM: European Supermarket Magazine.
