Diageo to buy George Clooney's tequila brand Casamigos for $1B

Diageo PLC has agreed to buy George Clooney's high-end tequila brand Casamigos in a deal that values it at up to $1 billion, as the world's largest spirits company seeks to boost its presence in a high-growth market.

Diageo said on Wednesday it will pay $700 million initially for the brand, co-founded by the American actor, with a further potential $300 million to be paid, based on a performance linked earn-out over 10 years.

The maker of Smirnoff vodka and Guinness beer said the deal will be neutral to earnings for the first three years and add to earnings thereafter.

The deal is expected to close in second half of the year. (Reporting by Martinne Geller; Editing by Elaine Hardcastle)