Jalisco, Mexico - London-based spirits company Diageo has entered into a definitive agreement to acquire Casamigos, the tequila company co-founded by George Clooney, and the fastest growing super-premium tequila brand in the US.

The transaction values Casamigos at up to $1 billion, with initial consideration set at $700 million and a further potential $300 million based on a performance linked earn-out over 10 years, reflecting the brand's exceptional growth trajectory and upside potential.

Casamigos was created in 2013 by founders Rande Gerber, George Clooney and Mike Meldman. After Clooney and Gerber built neighboring vacation homes in Cabo San Lucas, they decided to create the best tasting, smoothest tequila to drink and share with friends.

They worked with a distiller in Jalisco, Mexico, to create the tequila that became Casamigos - but had no intention of selling it. After the distiller told them they needed to get a license to go along with the roughly 1,000 bottles they were making each year, they reluctantly created the company, and the first bottles went on store shelves in 2013. The brand thrived under their organic approach in reaching and expanding their "house of friends," and the trio will continue to promote the brand and provide their leadership.

Since inception, Casamigos has received numerous awards and accolades from tequila experts, taste makers and influencers across the US. The brand's quality and uniqueness has delivered impressive growth, reaching 120k cases in 2016, and is expected to reach over 170k cases by the end of 2017.

If the deal closes by the end of 2017 as expected, the tequila will join a spirits house that includes Don Julio tequila, as well as venerable brands such as Guinness beer, Johnnie Walker scotch, Tanqueray gin and Ketel One vodka.