Bushmills, which comes from the world's oldest licensed whisky distillery in the world, will join Diageo's established whisky brands Johnnie Walker and J&B as well as new brand -6, which was launched in March and aimed at a younger target market than its traditional brands.
Diageo is predicting huge growth for Bushmills in the Irish whiskey category which has grown at annual rate of 3.8% since 1998.
Paul Walsh, chief executive of Diageo, said: "We believe Bushmills has huge growth potential and we are looking forward to utilising our marketing expertise and distribution capabilities to move this brand into the global whisky market."
He added: "Since 2000 Diageo has built a focused premium drinks company which is now a world leader. The business has grown organically and through targeted acquisitions and the Bushmills purchase continues this strategy."
The Bushmills range includes 10, 16 and 21 year old single malts as well as Black Bush and Bushmills original.
There has been little investment in above the line advertising supporting the Bushmills brand in recent years.
Earlier this year integrated agency Beechwood was appointed to launch a customer relationship marketing campaign for Bushmills in England, Scotland and Wales. Prior to that there had been some digital and more direct marketing activity.
Diageo also owns drink brands Smirnoff, Captain Morgan, Cuervo, Tanqueray as well as Beaulieu and Sterling Vineyard.
The Bushmills Distillery, devoted to single malt production, first received its licence in 1608 from James I. The distillery is located in a small village in Co. Antrim, on the northern coast of Ireland.
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