Treasury Wine Acquires Frank Family Vineyards for $315M

Treasury Wine Estates Limited (TWE) recently reached an agreement to acquire Frank Family Vineyards (FFV) in the Napa Valley at a transaction value of $315 million. FFV is a wine business with a strong revenue track record and EBITS growth in addition to EBITS margins in the range of 35 to 40 percent.

The FFV portfolio is complementary to Treasury Americas, filling a key portfolio gap for luxury chardonnay. The acquisition is expected to be completed next month, with a commitment to ongoing involvement in the Treasury Americas business by FFV’s founders Rich and Leslie Frank. TWE has substantially completed its program to divest non-priority U.S. portfolio brands and assets, with total net cash proceeds of $300 million (Australian).

“This is a rare opportunity to acquire a luxury brand and portfolio of wines that consumers enjoy and connect with,” says Tim Ford, chief executive officer of TWE. “This business has a proud and consistent history and proven track record of success, having been expertly built and led by Leslie and Rich. This is a compelling strategic and financial investment, comfortably meeting our investment criteria and one we expect will deliver attractive growth and financial returns for TWE’s shareholders over the long term.”