THE tequila company co-founded by Hollywood star George Clooney has been acquired by Diageo in a deal that values the business at $1 billion, writes Scott Wright.

Scotland’s biggest Scotch whisky distiller will pay an initial $700 million for Casamigos, with the potential for a further $300m based on a performance linked earn-out over 10 years.

The deal comes just four years after Clooney created the company, whose names translates as “house of friends” with Rande Gerber and Mike Meldman.

Since then the brand has won numerous awards and achieved rapid sales growth. Case sales are on track to reach more than 170,000 by the end of this year, after hitting 120,000 in 2106.

Diageo said acquiring Casamigos gives the drinks giant a presence in the fast-growing “super-premium” tequila market.

And it noted Clooney and the brand’s other co-founders will continue to promote Casamigos and “provide their leadership and vision” further to the deal.

Diageo chief executive Ivan Menezes said the company plans to “expand the reach of Casamigos to markets beyond the US to capitalise on the significant international potential of the brand. “

Mr Menezes added: “We look forward to building on the remarkable success of Casamigos to date.”