Treasury Wine Estates (Australia) → Frank Family Vineyards (Napa Valley, US)

completed

Deal announced2021-11-17

BuyerTreasury Wine Estates (Australia)

SellerFrank Family Vineyards (Napa Valley, US)

SectorWine

ValueA$437.0M

Deal typeM&A

ASX-listed Treasury Wine Estates acquired Napa Valley luxury winery Frank Family Vineyards for US$315 million, closing 13 December 2021. This is an Australian company acquiring a US asset, expanding Treasury's US luxury portfolio.

Why the buyer wanted it

Treasury wanted to fill a gap in its US luxury portfolio with Frank Family's chardonnay-led range; the winery generated US$54m net sales and US$21m pro forma earnings in its last fiscal year.

Why the seller agreed

Founders Rich and Leslie Frank sold while committing to ongoing involvement in the business under Treasury Americas.

Stock reaction

Not specifically detailed in available coverage.

Deal mechanics

Seller's advisors

Houlihan Lokey (financial adviser to Frank Family Vineyards)

Deal structure

All-cash, funded via US$240m in debt plus cash including proceeds from recent divestments

Financing source

US$240m debt plus cash on hand

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Treasury Wine Estates (Australia) → Frank Family Vineyards (Napa Valley, US)

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