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News Alert: Treasury Wine Announces $315 Million Deal For Napa Valley’s Frank Family Vineyards

November 17, 2021

Treasury Wine Estates has taken another key step in premiumizing its U.S. portfolio, announcing a deal to acquire Napa Valley’s Frank Family Vineyards for $315 million. Frank Family is known for Chardonnay and also markets Cabernet Sauvignon, Pinot Noir, and sparkling wine. The company had net sales of $54 million and EBITS of $21 million in its most recent fiscal year.

The transaction includes the Frank Family tasting room in Calistoga, the Benjamin Vineyard in Rutherford, the S&J Vineyard in Capell Valley, and a portfolio of wines across three collections with retail price points ranging from $38 to $225 per bottle. Rich and Leslie Frank will maintain the ownership of Winston Hill Vineyard in Rutherford and the Lewis Vineyard in Napa, Carneros. Both vineyards will continue to source grapes for the Frank Family reserve tier after the sales agreement. Frank Family winemaker and general manager, Todd Graff, will remain with Frank Family Vineyards after closing.

“The acquisition of Frank Family Vineyards represents an outstanding 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,” said Ben Dollard, president of Treasury Wine Estates Americas.

Treasury noted that the transaction’s multiple of 13.2 times EBITDAS is favorable, and that Frank Family has EBITS margins in the range of 35-40%. The deal is expected to close in December.

Treasury added that it has now substantially completed its program to divest non-priority U.S. portfolio brands and assets, with total net cash proceeds of approximately A$300 million ($$217m). SND exclusively reported Far Niente’s recent purchase of TWE’s former Provenance wineryin Rutherford.—Daniel Marsteller

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