SYDNEY, AUSTRALIA: Treasury Wine Estates Ltd (TWE), the Australian wine company behind brands such as Penfolds and Beringer, has announced a major deal to acquire DAOU Vineyards, a leading luxury wine producer in California, for US$900 million. The deal also includes an additional payment of up to US$100m if DAOU meets certain sales growth targets from 2025 to 2027.

DAOU, based in Paso Robles, is the fastest growing luxury wine brand in the US market, according to TWE. The company produces high-quality wines that sell for between US$20 and US$40 per bottle, as well as ultra-premium wines above US$40 per bottle.

TWE said the acquisition will boost its focus on luxury wines, which will account for about 50% of its global sales. It will also create a dominant US luxury wine business by combining its existing Treasury Americas division with DAOU.

The deal will also provide the scale to support a future standalone Treasury Americas Luxury division, TWE said.

TWE expects the acquisition to be earnings per share (EPS) accretive in the first full year of ownership (F25), before accounting for cost synergies of more than US$20m. The deal will also enhance TWE’s EPS by mid to high single digits in F25, after factoring in the cost savings.

TWE CEO Tim Ford said the acquisition was a “transformational opportunity” for the company and its shareholders.

“We are delighted to welcome the DAOU team to TWE and look forward to working together to grow our combined luxury wine portfolio in the US and around the world,” he said.

DAOU co-founders Georges and Daniel Daou said they were excited to join TWE and share their passion for making world-class wines.

“We believe that TWE is the ideal partner to take DAOU to the next level of success and we are confident that our brands and vineyards will continue to thrive under their stewardship,” they said.

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