What's Up With George Clooney's Tequila Company?

A spirits company based in the U.K. will purchase Casamigos Tequila for up to $1 billion.
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What's Up With George Clooney's Tequila Company?

George Clooney's tequila company just earned him a really big payday.

According to Clooney's business partner, Rande Gerber, the company was "started by accident." The pair initially just wanted to create tequila for their family and friends.

But eventually, they were producing so many bottles of tequila that their distiller said they needed to get a commercial license.

With the help of real estate mogul Mike Meldman, Casamigos Tequila went public in 2013.

The company's steadily growing: It sold 120,000 cases of tequila last year and expects to sell more than 170,000 by the end of 2017.

Now, U.K.-based spirits giant Diageo is going to purchase Casamigos for up to $1 billion.

Diageo will initially purchase Casamigos for $700 million. It will pay up to $300 million more if the tequila company performs well over the next 10 years.

You might be familiar with some of Diageo's other brands like Johnny Walker, Smirnoff, Tanqueray and Guinness. 

Forbes reports Clooney and his partners each own an equal share of Casamigos, so all three could earn as much as $333 million before taxes.

Clooney, Gerber and Meldman will stay on with Casamigos in some capacity.

The up to $1 billion deal isn't Clooney's only reason to celebrate this month — earlier in June, he and his wife Amal welcomed their first children: twins Ella and Alexander.