Treasury Wine Estates (TWE) has reached an agreement to acquire Frank Family Vineyards in the US for $315 million (£235.46m).
A luxury wine business based in the Napa Valley, California, Frank Family Vineyards (FFV) has an award-winning portfolio across three collections. The business has an impressive track record of growth, with revenue having increased every consecutive year since 2009.
TWE said the FFV portfolio is highly complementary to Treasury Americas, filling a key portfolio gap for luxury chardonnay, while Treasury Americas is well placed to enhance FFV’s growth given its leading luxury sales credentials, national distribution network and Californian asset base and sourcing model.
“The acquisition of Frank Family Vineyards represents an outstanding complementary addition to the Treasury Americas brand portfolio and is another important step towards our ambition of becoming the premium wine market leader in the Americas,” Tim Ford, TWE chief executive, commented.
Rich Frank, founder of Frank Family Vineyards, added: "Leslie and I look forward to continuing to be a part of the next chapter of Frank Family Vineyards, a business we have spent nearly three decades cultivating into a beloved luxury wine brand. We have prided ourselves on creating a family atmosphere among our staff and our guests and know this legacy will carry on.
“We, along with our team, are excited to remain actively involved with Frank Family, while also taking on new leadership roles with Treasury Americas.”
TWE will fund the acquisition, which is expected to be completed next month, via a combination of debt and cash, including proceeds from recent US asset divestments.
The company said it has substantially completed its program to divest non-priority US portfolio brands and assets, with total net cash proceeds of approximately A$300m now confirmed.
