Australia-based wine company, Treasury Wine Estates (TWE) announced on Monday that it agreed to purchase the popular California winery, DAOU Vineyards, for up to $1 billion. The deal, which was settled for an upfront consideration of $900 million, plus an additional earn-out of up to $100 million, is expected to be completed by the end of 2023. This monumental purchase will expand TWE’s luxury portfolio, and is expected to drive TWE’s growth in key global markets such as the U.S.
“The U.S. 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,” Tim Ford, CEO of Treasury Wine Estates said in a press release. “This is a transformative acquisition that will accelerate the growth of our luxury portfolio globally and paves the way for new luxury consumer experiences.”
