Diageo Becomes Ketel(’s) One & Only
The Nolet family of the Netherlands has reached an agreement to form a new company under which Diageo would pay $9OO million to become the world’s exclusive distributor of Ketel One vodka. Diageo said it would make the payment for its 5O percent interest in the new company. The partners said the company would be based in the Netherlands and the Nolet family will continue to own the brand rights for Ketel One. Moreover, ownership of the 317-year-old distillery in Holland that makes Ketel One will remain with the Nolet family. The deal is slated to close by early spring, subject to approval by regulators. Diageo said it expects the transaction to have no impact on its earnings per share in the first full financial year after the deal closes, but to be “profit positive” in year five.