© 2017 The Texas Lawbook.
By Natalie Posgate
(June 22) – When is a tequila shot before noon warranted?
A. When you finish an awful, contentious deposition that began at the crack of dawn;
B. When you’re on vacation, perhaps at an all-inclusive resort in Mexico, or;
C. When you sign a $1 billion sale of George Clooney’s tequila business. (#casual)
Larry Waks and a group of Wilson Elser lawyers likely rounded up the salt and lime after executing Answer C on Wednesday. The firm helped the Hollywood actor and his high-profile co-founders, Rande Gerber and Mike Meldman, sell Casamigos Tequila to Diageo North America.
Diageo, which owns many other liquor brands, will pay $700 million upfront for Casamigos plus a potential additional $300 million. As part of the agreement, the celebrity founders will remain actively involved in the day-to-day operations of the company and serve as brand ambassadors, Waks said.
“This relationship is a credit to both the sellers and the buyer,” said Waks, an of counsel in Wilson Elser’s Dallas, Austin and White Plains offices.
Beyond the celebrity angle, Waks said another notable aspect of this deal is that it “reflects a growing demand in the food and beverage market for premium lifestyle brands.”
The Wilson Elser deal team also included Dallas corporate associate Larry Banda, as well as attorneys from the firm’s White Plains, New York City, Los Angeles and New Jersey offices.
The firm also represented Casamigos CEO Lee Einsidler and company owners Glenn Rotner and Schuyler Joyner on their roles in the transaction.
Waks said he got involved through fellow Wilson Elser partner John Flannery, a partner in the firm’s White Plains office and fellow deal team member for Wednesday’s transaction. Flannery successfully represented Casamigos in a prior, unrelated litigation matter.
When the Diageo transaction started brewing, Casamigos asked Flannery if anyone else at Wilson Elser could handle the deal. He recommended Waks.
“It was right dead smack in my wheelhouse,” Waks said. “I do a tremendous amount of M&A, food and beverage and entertainment law work, and this was a confluence of all three areas.”
Clooney, Gerber and Meldman founded Casamigos in 2013. The essence of the brand, “made by friends for friends,” is reflected in the name, which means “house of friends.”
Sullivan & Cromwell represented Diageo. Pending regulatory approval, the deal is expected to close within the next 30 to 45 days.
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