Casamigos' founders (Clooney, Gerber and Michael Meldman) will continue to promote and lead the tequila brand they created, Diageo says.
The deal is expected to close during the second half of this year and Diageo forecasts that Casamigos will start earning money for the company after four years.
"We're not going anywhere", he said in his statement.
In a note to clients on the deal, analysts at U.S. investment bank Citi said the brand acquisition "should help Diageo's medium term growth in United States, but this comes at a very high price". Starting with a shot tonight.
By last November, nightlife entrepreneur Gerber (pictured above right with Clooney) was telling CNBC that it was "the fastest-growing ultra-premium tequila in the country". Besides Casamigos, Diageo already has the Don Julio tequila brand.
"It supports our strategy to focus on the high-growth, super-premium and above segments of the category", Diageo CEO Ivan Menezes said in a statement.
Diageo, the world's biggest spirits maker, will pay $700 million now and a further $300 million based on the brand's performance over the next decade. Last year, Gerber told MSNBC the secret to their success: "We have an low-priced bottle, but the best quality tequila inside".
We'd imagine that every month being George Clooney is a pretty good month but even by his standards, June has been exceptionally good to him.
"We look forward to building on the remarkable success of Casamigos to date". When the partners ran into licensing requirements, they decided to make the brand public and it quickly became the fastest-growing ultra-premium tequila in the U.S., CNBC noted.