By Stuart Condie SYDNEY--Treasury Wine Estates will buy California-based DAOU Vineyards for up to $1 billion in a move the Australia-based producer said...
SYDNEY--Treasury Wine Estates will buy California-based DAOU Vineyards for up to $1 billion in a move the Australia-based producer said provides it with scale to launch a future standalone Americas luxury division.
Treasury on Tuesday said it agreed to pay $900 million up front for what it called the fastest-growing luxury wine brand in U.S. trade over the 12 months through Oct. 8. It could pay up to $100 million in additional earn-outs linked to growth targets over the three years through 2027. The ASX-listed company said that the acquisition would accelerate its focus on its so-called premiumization strategy. Treasury over recent years has been increasing its focus on higher-margin premium wines in response to changing consumer trends and a crowded lower-end market.
Treasury will fund the acquisition with a fully underwritten entitlement offer of 825 million Australian dollars , a A$157 million share placement, and $311 million of debt from a new $350 million facility.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
10-year Treasury yield jumps as traders eye Treasury's quarterly refundingVivien Lou Chen is a Markets Reporter for MarketWatch. You can follow her on Twitter vivienlouchen.
Read more »
Wine 4 Life fundraiser in Cleveland scheduled to fight rare cancersA Wine 4 Life fundraiser is set in BurkleHagen Studio in Cleveland to raise money for rare-cancer research.
Read more »
US Treasury warns crypto firms not to fund Hamas during the Israel warThe Treasury Department has already imposed sanctions on 10 Hamas members, operatives, and other entities tied to the terrorist organization.
Read more »
Frazzled Stock Investors Eye Frothy Treasury Market as Fed LoomsFinancial markets are bracing for what could be a momentous week, with a Federal Reserve meeting, U.S. employment data and earnings from technology heavyweight Apple Inc possibly setting the course for stocks and bonds the rest of the year. October has lived up to its...
Read more »
Americans urged to buy Israeli wine to aid Jewish relief efforts: 'Sip for Solidarity':Today’s Video Headlines
Read more »
Hallo-Wine Party!Have you made your Halloween night plans yet? Skip trick or treat and come to the winery! There'll be live music from fantastic guitarist Michael Bärwolf from 7-9pm (he takes requests!), a costume contest with prizes (a bottle of Blackberry Merlot is on the line for the best costume!!), and there may just be a runway walk for the contest finalists.
Read more »