Diageo completes sale of US and UK wine assets to TWE
Diageo, the British spirits maker has completed sale of its US and UK wine assets to Treasury Wine Estate of Australia in a transaction valued at $552m.
The deal includes the sale of its US-based Chateau & Estate Wines and UK-based Percy Fox, makers of the Blossom Hill and Piat d’Or brands.
Diageo announced its intent to sell majority of its wine business to Treasury on 14th October, 2015.
Treasury’s CEO, Michael Clarke, described the deal as a “game changer” that would give the company “an immediate opportunity” to increase its growth in the US, Canada, Asia and Latin America.
Diageo is set to focus on spirits and its Guinness brand with CEO Ivan Menezes previously stating that wine was “no longer core” to the company’s strategy. In November, Diageo also announced the sale of its entire Argentine wine business, including Navarro Correas and San Telmo brands to Grupo Penflor, an Argentine company. Penaflor will also be distributor of Diageo’s international spirits brands in Argentina and, after an interim period, will produce the company’s domestic spirit brands.
Also last year, Diageo sold $780m worth of its brewing assets in Jamaica, Malaysia and Singapore to Heineken.