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Penfolds Owner Treasury Wine Estates to Acquire Daou Vineyards for $1.6 Billion

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Penfolds,Treasury Wine Estates,Daou Vineyards

Treasury Wine Estates, the owner of Penfolds, is investing $1.6 billion to purchase high-end Californian winemaker Daou Vineyards, in a deal that includes a possible additional payment of $100 million. The acquisition is part of Treasury Wine Estates' strategy to tap into the global growth potential of the luxury wine market.

Penfolds owner Treasury Wine Estates is upping its bets on the global growth potential of the luxury wine market, agreeing to fork out up to $1.6 billion to buy high-end Californian winemaker Daou Vineyards.

Treasury Wine Estates chief executive Tim Ford said the group continued to see long-term growth opportunities in the luxury wine segment.The deal will be funded through a combination of an $825 million equity raising, a $157 million placement of shares to the owners of Daou, and taking on $311 million of debt, the Melbourne-based company said in a statement to the Australian sharemarket on Tuesday morning.

The group makes wines across five product tiers ranging from $US20 and $US500 a bottle, and owns a tasting room venue, four luxury vineyards and four wineries.

 

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