Aviation, fronted by Hollywood A-lister Ryan Reynolds, is one of the fastest-growing brands within the US super-premium gin segment and grew volumes at over 100% in 2019.
The brand also added the highest number of cases and contributed 40% of super-premium gin segment growth, said Diageo.
Diageo is acquiring the brand through the acquisition of its owner, Davos Brands, with its other products Astral Tequila, Sombra Mezcal and TYKU Sake also part of the deal.
Reynolds, Davos’ co-founder, will retain an ongoing ownership interest in the business, said the FTSE 100 group.
The consideration comprises an initial payment of $335mln and a further potential consideration of up to $275mln based on the performance of Aviation American Gin over ten years.
Ivan Menezes, Diageo’s chief executive, 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.”
Ryan Reynolds said: “A little over two years ago, I became an owner of Aviation Gin because I love the taste of Aviation more than any other spirit. What I didn’t expect was the sheer creative joy learning a new industry would bring.”