Diageo has sold the majority of its wine division, including the Blossom Hill brand, to Treasury Wine Estates for approximately £360m.
The $552m deal encompasses the UK-based Percy Fox business and Chateau and Estate Wines in the US, and is expected to complete around the end of the calendar year.
Ivan Menezes, Chief Executive of Diageo, said wine was no longer a core consideration and the sale would give greater focus to the business: “With the completion of this transaction Diageo will have released £1 billion from the sale of noncore 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.”
