Sullivan & Cromwell is advising drinks giant Diageo on its acquisition of a tequila company set up by US actor George Clooney.

Diageo has agreed to pay $700m (£553m) initially for Casamigos, which Clooney set up in 2014 along with property developer Mike Meldman and Rande Gerber.

A further $300m (£237m) will be paid during the next 10 years, depending on the performance of the company.

Sullivan head of EU competition Juan Rodriguez, who is based in London, is advising Diageo along with a New York team including head of tax Ronald Creamer, litigation partner Stephen Holley, executive compensation M&A head Matthew Friestedt and co-head of consumer and retail Melissa Sawyer.

Casamigos is being advised by US firm Wilson Elser Moskowitz Edelman Dicker.

Sullivan has a longstanding relationship with Diageo. In 2008, it advised the UK-headquartered company on its $900m (£456.5m) joint venture with Dutch distiller Ketel One. Three years later, it advised Diageo when it paid $16.4m (£13m) in a settlement following a probe by the Securities and Exchange Commission.

Diageo has historically also instructed Slaughter and May for a variety of work. In October 2015, Slaughters advised Diageo on a series of cross-border M&A deals with brewer Heineken, and has previously won a spot on its UK legal panel.