Diageo’s Indian division has found a buyer for the Royal Challengers Bengaluru cricket franchise, netting its parent almost US$1.8bn.
The sale by United Spirits, which was confirmed late today (24 March), closes the curtain on a review of the unit’s ownership that dates back to November. Royal Challengers, which plays in the lucrative Indian Premier League cricket tournament, will transfer to a consortium of four companies that includes The Times of India Group and Blackstone private equity “strategy” BXPE.
“This transaction marks an important milestone for USL as we sharpen focus on our core beverage alcohol business to unlock its true potential with sustained growth, and to continue delivering on long-term value creation for our stakeholders,” said unit CEO Praveen Someshwar.
“As sports enters a new phase of growth in India & globally, we believe this is in the best interest of the franchise and our stakeholders.”
Diageo inherited RCB through its purchase of control of United Spirits, the journey to which commenced in 2012, with its share rising to 56% by 2023. The rest of the Bangalore-based business is publicly-listed in the country.
Last month, CEO Dave Lewis shared his thoughts on the group, having assumed his position at the start of the year. “Only several weeks in,” he said, “I can already see significant opportunities for Diageo to act more decisively to enhance its competitiveness and broaden the portfolio offering, leading to higher growth.
“I am encouraged by the depth of the passion and pride that our people have for our brands across the business. This will be invaluable given the significant work ahead.”
