Australian Winemaker Acquires California Winery for Record-Breaking $1 Billion
Australian winemaker Treasury Wine Estates (TWE) has acquired California vineyard Daou Vineyards for $1 billion, aiming to establish a strong presence in the premium U.S. wine market. Daou Vineyards, founded by Lebanese American brothers Georges and Daniel Daou, started as a small-scale operation and has grown into a successful winery. TWE sees higher-quality wines as the future of its business and aims to become the world's most admired premium wine company. The acquisition includes upfront payments of $900 million, with an additional $100 million contingent on meeting performance targets. TWE's expansion into the U.S. market is driven by the decline in Australian wine exports to China due to tariffs imposed in response to political tensions.