Treasury Wine Estates Limited
(ASX:TWE) is set to acquire the majority of Diageo’s wine business.
The winemaking and distribution business announced it has agreed to acquire the majority of assets from Diageo Plc’s US and UK wine operations for a cash payment of US$552 million and the assumption of capitalised leases of US$48 million.
Treasury Wines expects to fund the acquisition via an entitlement offer to raise approximately $486 million, with the balance funded through new USD denominated fully underwritten debt facilities.
The acquisition is subject to certain regulatory approvals, including anti-trust approval in the US, and is expected to complete in approximately three months.
Treasury Wine Estates reported a net profit of $77.6 million at 30 June 2015.
