Treasury Wine Estates (TWE) is poised to enhance its commitment to luxury wines through the acquisition of the Daou Vineyards, a prominent US wine business.
The agreement encompasses an initial payment of $900 million, along with a potential additional earn-out of up to $100 million.
Established in 2007 in Paso Robles, California, Daou is reputed as the swiftest-rising luxury wine label in the US market in the previous year.
Anticipated to be finalized by year-end, the transaction encompasses the Daou brand, Daou Mountain Estate with its hospitality facility, four exclusive boutique wineries, and roughly 400 acres of vineyards situated 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 contingent on receiving approval from US antitrust authorities.
