Multinational alcoholic beverages company Diageo has agreed to sell 19 brands to US-based distiller Sazerac for an aggregate consideration of $550m.

The brands involved in the transaction include Seagram’s VO, Seagram’s 83, Seagram’s Five Star, Myers’s, Parrot Bay, Romana Sambuca and Popov, as well as Yukon Jack, Goldschlager, Stirrings and The Club.

Other brands included in the deal are Scoresby, Black Haus, Peligroso, Relska, Grind, Piehole, Booth’s and John Begg.

Following completion, around £340m ($437m) of net proceeds after tax and transaction costs will be returned to Diego’s shareholders through a share repurchase. The transaction is subject to regulatory approval and is expected to take place early next year.

” The disposal of these brands enables us to have an even greater focus on the faster-growing premium and above brands in the US spirits portfolio.”

Diageo’s CEO Ivan Menezes said: “Diageo has a clear strategy to deliver consistent efficient growth and value creation for our shareholders. This includes a disciplined approach to allocating resources and capital to ensure we maximise returns over time.

“Today’s announcement is another example of this strategy in action. The disposal of these brands enables us to have an even greater focus on the faster-growing premium and above brands in the US spirits portfolio.”

Diageo has also entered long-term supply contracts with Sazerac for five of the brands, which will each last for a period of ten years.

The UK-based firm noted that all of the other acquired brands will transition to Sazerac over a period of one year from the deal’s completion.

In March this year, Diageo acquired Belsazar, a vermouth aperitif brand from Germany’s the Black Forest.