Treasury Wine Estates (TWE), a world Australian winemaking and distribution big, announced the acquisition of DAOU Vineyards, a prestigious wine firm based by Georges and Daniel Daou. The $900 million deal, plus a possible $100 million earnout, is anticipated to permit TWE to focus extra on an more and more luxury-focused portfolio, significantly in america and on different key development markets.
The thrill across the acquisition
This acquisition prompted a stir within the wine trade, not solely due to the excessive worth, but additionally due to DAOU Vineyards’ fast development and repute within the luxurious wine phase. Because the quickest rising luxurious wine model in america over the previous 12 months, DAOU Vineyards is extensively recognized for its award-winning Cabernet Sauvignon-based PATRIMONY wines and distinctive shopper profile.
The strategic motion
The inclusion of DAOU Vineyards in TWE’s portfolio is a strategic transfer to speed up the expansion of its premium and luxurious portfolio in america and globally. This acquisition consolidates TWE’s place as a world chief within the luxurious wine phase. Moreover, the deal is anticipated to create vital worth, capitalizing on the distinctive strengths of TWE and DAOU to construct a mixed luxurious portfolio with potential for world enlargement.
DAOU Vineyards: The Jewel of California Wine Nation
DAOU Vineyards, established in 2007, relies within the well-known American wine area of Paso Robles, California. DAOU’s absolutely built-in digital platform, DAOU+, skillfully combines e-commerce and membership with distinctive options that improve shopper loyalty.
The winery itself is sort of a sight to behold, situated on a 212-acre hilltop property within the Adelaida district of Paso Robles. The vineyard is thought for its Cabernet Sauvignon and different Bordeaux grape varieties, produced within the excellent microclimate and noteworthy geology of the DAOU mountain.
Particulars of the acquisition
The acquisition contains the DAOU model, the DAOU Mountain Property and residential web site, 4 luxurious wineries and roughly 400 acres of vineyards within the coveted Adelaida District of Paso Robles. This necessary settlement is anticipated to be finalized by the top of 2023, pending approval from US antitrust authorities.
Georges and Daniel Daou, the founders of DAOU Vineyards, will proceed to be actively concerned within the enterprise, with Georges as founder and Daniel as founder and head winemaker of DAOU.
Finance the acquisition
Treasury will fund the acquisition with a completely subscribed A$825 million ($525.9 million) rights providing, an A$157 million share placement and $311 million of debt from a brand new $350 million facility.
The way forward for DAOU and TWE
TWE has huge plans for DAOU. The corporate goals to convey DAOU’s distinctive portfolio, winemaking philosophy and distinctive luxurious ingesting experiences to new worldwide markets, using TWE’s world advertising and marketing and distribution experience. TWE will even discover sourcing alternatives exterior of america for DAOU as a part of its world sourcing technique.
A pacesetter of change within the trade
DAOU Vineyards is dedicated to producing world-class collectible wines that rival the world’s most revered appellations. Each DAOU and TWE are leaders of change within the wine trade and, by becoming a member of forces, they goal to revolutionize the trade and produce the most effective in wine and luxurious experiences to customers world wide.
In a press release, Tim Ford, CEO of Treasury Wine Estates, stated: “America is the most important wine market on the earth and we’re delighted so as to add DAOU to our portfolio, cementing our place as a world chief in luxurious wine. It is a transformative acquisition that accelerates the expansion of our luxurious portfolio globally and paves the best way for brand spanking new luxurious consumption experiences. DAOU is an award-winning luxurious wine firm with an distinctive development monitor report and we now have huge plans for DAOU to grow to be the subsequent model with the worldwide attain and luxurious credentials of Penfolds. With DAOU, we might be nicely positioned to attach with a brand new technology of wine lovers, combining custom, innovation, cultural experiences and world distribution.
Georges and Daniel Daou, founders of DAOU, stated: “The ultimate frontier has all the time been worldwide and, as a part of the Treasury Wine Estates portfolio, we now have unlocked the potential to be among the many premium wines that buyers within the the entire world can admire. In Treasury Wine Estates, we now have discovered a associate who understands not solely the worth of our model and the premium property we now have cultivated, but additionally the significance of making certain that we keep a constant concentrate on high quality and know-how as we transfer into the long run. Each firms are leaders of change and by becoming a member of forces we’ll boldly proceed to disrupt the trade and ship the most effective in wine and luxurious experiences to customers world wide.
This acquisition marks a major milestone within the wine trade, demonstrating the potential of luxurious wine manufacturers and the rising concentrate on premiumization within the trade. The longer term seems shiny for TWE and DAOU Vineyards, who collaboratively goal to succeed in new heights within the world wine market.