A prestigious Paso Robles wine brand just sold for $900 million.
Treasury Wine Estates reached an agreement to buy Daou Vineyards, launched by brothers Daniel and Georges Daou in 2007, for an “upfront consideration of $900 million, plus an additional earn-out of up to $100 million,” the Australian corporation announced Monday, calling Daou “the fastest-growing luxury wine brand in the United States.”
“The U.S. is the world’s largest wine market and we’re beyond thrilled to add Daou to our portfolio, cementing our position as a global luxury wine leader,” Treasury Wine Estates CEO Tim Ford said in a news release.
The publicly traded firm already owns several well-known U.S. labels, including Beringer and Stag’s Leap Winery.
The blockbuster deal includes the Daou brand as well as four boutique luxury wineries, the 212-acre Daou Mountain estate and tasting room west of Paso Robles and about 400 acres of vineyards in the Adelaida District of Paso Robles.
Also included in the purchase are other Daou-owned properties in San Luis Obispo County: Daou Ocean off Highway 1 in Cambria and the former Bank of America building in downtown Paso Robles, according to Maeve Pesquera, a Daou senior vice president.
“It’s a great day for Paso Robles,” she said Monday via phone.
Pesquera said the deal does not include the 173-acre vineyard property the Daous bought in Tuscany, Italy.
The acquisition is expected to be completed by mid-December.
Daou brothers to remain ‘actively involved’ with wine brand
Born in Lebanon and raised in France, Georges and Daniel Daou started Daou Vineyards after selling their health care technology firm.
In the release, the Daou brothers said Treasury Wine’s acquisition of Daou Vineyards will unlock the brand’s “potential to be amongst the highest-end wines for consumers to enjoy globally.”
“In Treasury Wine Estates, we have found a partner that not only understands the value of our brand and the premium assets we have cultivated but also the importance of ensuring that we maintain a relentless focus on quality and craftsmanship as we step into our future,” the Daous said.
According to the release, the brothers both expect to remain “actively involved” in Daou Vineyards, with Georges Daou as founder and Daniel Daou as founder and chief winemaker.
“Daou is an award-winning luxury wine business with an outstanding track record for growth,” Ford said, and Treasury Wine has “grand plans” for it to become “the next brand with the international scale and luxury credentials” of venerable Australian winery Penfolds.
“With Daou, we will be well-positioned to connect with a new generation of wine lovers, combining tradition with innovation, culture-led experiences and global distribution,” he said.