Diageo to pay $900 mln in deal to sell Ketel One

NEW YORK, Feb 5 (Reuters) - Diageo Plc (DGE.L: Quote, Profile, Research) and the Nolet family of the Netherlands on Tuesday said they reached an agreement to form a new company under which Diageo would pay $900 million to become the world's exclusive distributor of Ketel One vodka.

Diageo, the world's biggest maker of alcoholic drinks whose brands include Smirnoff Vodka and Johnny Walker whisky, said it would make the payment for its 50 percent interest in the new company.

The partners said the company would be based in the Netherlands and the Nolet family will continue to own the brand rights for Ketel One. Moreover, ownership of the 317-year-old distillery in Holland that makes Ketel One will remain with the Nolet family. (Reporting by Ransdell Pierson, editing by Phil Berlowitz)