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...
SYDNEY — Treasury Wine Estates TWE, -0.98% 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.
Treasury Wine Estates to Acquire DAOU Vineyards for US$900 MlnBy 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...
Read more »
Australia's Treasury Wine Estates to buy DAOU Vineyards for $900 millionAustralia's Treasury Wine Estates to buy DAOU Vineyards for $900 million
Read more »
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 »
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 »
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 »
Decoding the (Almost) 5% 10-Year Treasury YieldInvestors debate whether borrowing benchmark has finally topped out
Read more »