Treasury Wine Estates (TWE) is acquiring US wine business Daou Vineyards as it looks to accelerate its focus on luxury wines.
The deal includes an upfront consideration of $900 million, plus an additional earn-out of up to $100 million.
Founded in 2007 in Paso Robles, California, Daou is said to be the fastest-growing luxury wine brand in the US market over the past year.
The deal, which is expected to be completed by the end of the year, includes the brand, Daou Mountain Estate and hospitality site, four boutique luxury wineries and approximately 400 acres of vineyards in the Adelaida district of Paso Robles.
Tim Ford, CEO of TWE, said: “The US is the world’s largest wine market, and we’re beyond thrilled to add Daou to our portfolio, cementing our position as a global luxury wine leader. This is a transformative acquisition that will accelerate the growth of our luxury portfolio globally and paves the way for new luxury consumer experiences.”
He continued: “…we have grand plans for Daou to become the next brand with the international scale and luxury credentials of Penfolds. With Daou, we will be well-positioned to connect with a new generation of wine lovers, combining tradition with innovation, culture-led experiences and global distribution.”
Georges and Daniel Daou, founders of Daou, added: “The last frontier has always been international, and as part of the Treasury Wine Estates portfolio, we have unlocked the potential to be amongst the highest-end wines for consumers to enjoy globally”.
They continued: “In Treasury Wine Estates, we have found a partner that not only understands the value of our brand and the premium assets we have cultivated but also the importance of ensuring that we maintain a relentless focus on quality and craftsmanship as we step into our future. Both companies are change leaders, and by joining forces, we will continue to boldly disrupt the industry and bring the very best in wine and luxury experiences to consumers around the world.”
The acquisition is subject to US anti-trust approval.
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