Treasury Wine Estates has completed its acquisition of Diageo’s U.S. and UK wine assets in a deal worth $552 million, according to the Irish Times. The deal, which was originally announced in October, includes the sale of Diageo’s U.S-based Chateau and Estate Wines, and its UK-based Percy Fox business. Upon closing, Treasury will have control of the Sterling Vineyards, Yellow Tail, Blossom Hill, and Piat d’Or brands, doubling the group’s luxury-segment net sales.

 

To fund the acquisition, Treasury, the largest independent wine maker in the world, announced a fully underwritten raising of A$486 million (US$350 million).

 

Diageo, which currently owns Johnny Walker whiskey, Smirnoff Vodka, and Guinness beer brands, has been actively seeking to divest some of its non-core assets, and in October announced the sale of its stakes in Jamaican brewer Desnoes & Geddes Ltd DG.JS and GAPL Pte Ltd, the majority owner of Malaysia's Guinness Anchor Berhad, to Heineken NV for $780.5 million, according to Reuters.

 

The group plans to use the £320 million (US$470.5 million) in net proceeds after tax and closing costs to pay down its debt.