Treasury Wine Estates Limited
(ASX:TWE) has inked a deal to sell its Asti Winery, Souverain brand and inventory and co-located vineyard assets in California.
Australia’s largest listed winemaker has struck the agreement with E.&J. Gallo Winery which will also see Treasury enter into a long-term leaseback of part of the vineyard.
As a result of the transaction Treasury Wine Estates expects to recognise a loss of about $US7.5 million which will be included in its FY15 results.
The company says it is executing plans to simplify its supply chain network and remove excess capacity, both locally and abroad.
Treasury Wine Estates reported a net profit of $42.6 million in the first half of the 2015 financial year.
