Spirits giant, Diageo announced on Monday that they are set to pay $610m (£466m) for Aviation American Gin, the brand co-owned by Ryan Reynolds and its majority owner Davos Brands.
Under the terms, Reynolds will remain the public face of the gin brand for the next 10 years and retain a stake. The value of the deal to the actor, who has a reported net worth of $75m (£57m), was not disclosed.
The full price, due in instalments, will depend on future performance. Aviation reported 100% growth in sales volumes last year as demand for premium gin surges globally.
Diageo, which already has Tanqueray and other gins in its stable of drinks brands, has a history of taking control of celebrity-driven spirits.
Reynolds said of his windfall: “A little over two years ago, I became an owner of Aviation Gin because I love the taste of Aviation more than any other spirit. “What I didn’t expect was the sheer creative joy learning a new industry would bring.
“Growing the brand with my company, Maximum Effort Marketing has been among the most fulfilling projects I’ve ever been involved with.”
Diageo chief executive, Ivan Menezes, said of the deal: “We are delighted to announce this transaction, which supports our participation in the super-premium gin segment in the US.
“The acquisition of Aviation American Gin and the Davos Brands portfolio is in line with our strategy to acquire high-growth brands with attractive margins that support premiumisation.”