Diageo and the Nolet family have formed a 50/50 company, which will own the rights to sell, market and distribute Ketel One vodka.
The drinks giant has agreed to pay $900m for its 50% equity interest in the company, which will be based in the Netherlands.
The Nolet family will continue to own the brand rights for Ketel One and Diageo will become the exclusive distributor of the brand globally.
The Nolet family will retain ownership of the distillery in the Netherlands. Ketel One currently has an annual volume of 1.9m cases with its biggest market being the United States.
"This transaction is strategically important for Diageo, giving us an interest in an outstanding high quality brand and fantastic potential for global growth in the super-premium vodka segment," said Diageo chief executive Paul Walsh.
"The new company represents a unique alliance in our industry."
Carel Nolet Snr added: "The partnership between Nolet and Diageo will combine our brand building and entrepreneurial skills with the unrivalled brand management, marketing and distribution expertise of Diageo to fully develop the potential of Ketel One vodka in the USA and globally."
The deal is expected to be finalised by 31 March.