Diageo PLC has commenced an auction of some of its U.S.-focused spirits brands in a sale that could be worth a combined total of $500 million to $1 billion, Sky News reported May 24, citing insiders.
Diageo reportedly plans to divest a number of its "non-core" brands, including Goldschlager, Myer's Rum, Popov and Romana. The British alcoholic beverage company is keen on selling the portfolio in a single transaction, the news outlet said.
One of the sources reportedly told Sky News that Diageo has engaged New York-based investment bank Centerview Partners to handle the sale. The process is expected to last for several months.
The report added that the company started holding talks with potential buyers of the brands in recent weeks as part of its plan to focus on premium labels.
A Diageo spokesman said the company regularly reviews its portfolio to ensure that the company is maximizing shareholder value, but declined to comment on the details of the auction, according to Sky News.
