Diageo is to sell the bulk of is wine operations, including the Blossom Hill and le Piat d'Or brands, to Treasury Wine Estates. The company said that it will sell the US-based Chateau & Estate Wines division and the UK's Percy Fox operations to TWO for US $552m. Amont the US assets that TWE will take over are Beaulieu Vineyards, Sterling Vineyards, Acacia, Prevenance and Hewitt. "With the completion of this transaction," said CEO Ivan Menzes, "Diageo will have released £1BN from the sale of non-core assets since the start of the financial year. This proactive portfolio approach has focused the business, enhanced our financial strength, improved our returns and strengthened the business, positioning us even more firmly to deliver our performance ambition. TWE CEO Michael Clarke said: "This acquisition will transform our US business into a larger player of scale in the attractive "luxury" and "masstige" segments of the high-growth US market." Upon completion, Diageo's wine interests will be limited to the Justerini & Brooks wine merchants, the wine brands of Mey Icki and United Spirits, as well as the Chalone brand and assets and Acacia winery and vineyard, both of which are in the USA.
