Diageo agrees sale of Windsor business to Bayside/Metis
25 March 2022, Seoul, South Korea – Diageo, a global leader in beverage alcohol, has agreed the sale of its Windsor business including the W series, to the Bayside Private Equity and Metis Private Equity consortium (‘Bayside/Metis’), a South Korean-based private equity group, for an aggregate consideration of KRW 200 billion (approximately £124 million).
The transaction will have no material impact on earnings per share in Fiscal 22. At completion of the transaction, expected to be in Fiscal 23, an exceptional cumulative foreign exchange translation gain will be recycled to the income statement. As part of the agreement, Diageo will supply Scotch whisky to Bayside/Metis under a 10-year supply agreement.
Sam Fischer, President of Asia Pacific and Global Travel for Diageo said:
“This transaction marks the next chapter for Diageo Korea. We remain fully committed to the market and further developing our international spirits and beer business, which is being driven by premiumisation and consumer interest in categories like international whisky. We take a disciplined approach to capital allocation and this sale is very much in line with our track-record of active portfolio management. We are grateful to our Diageo Korea employees for all their dedication and support of the Windsor business and we will work with them, the Union, our valued customers and partners, and Bayside/Metis to ensure a smooth transition.”
Bum Jun Kim, CEO of Bayside Private Equity for Bayside/Metis said:
“Windsor is an important addition to our investment portfolio and allows us to participate in the dynamic Korean beverage alcohol market. We are confident that we can build on the innovation of Windsor and unlock further potential. We will work closely with Diageo to ensure a smooth transition over the next few months.”