Treasury Wine Estates (TWE) has acquired luxury Napa Valley winery, Frank Family Vineyards (FFV) in a deal worth US$315m (AU$433m).
The FFV portfolio, which is Chardonnay-led and supported by a range comprising cabernet sauvignon, pinot noir and sparkling wine, will fill key portfolio gap for Treasury Americas in luxury Chardonnay. Treasury Americas said it is well placed to enhance FFV’s growth given its leading luxury sales credentials, national distribution network and Californian asset base and sourcing model.
Tim Ford, Chief Executive Officer of TWE, said: “The acquisition of Frank Family Vineyards represents an outstanding complementary 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.
“This is a rare opportunity to acquire a luxury brand and portfolio of wines that consumers enjoy and connect with. This business has a proud and consistent history and proven track record of success, having been expertly built and led by Leslie and Rich. Together with them, we are excited by the future potential that will be unlocked by the strengths of the Treasury Americas luxury wine platforms.
“We also look forward to welcoming the broader Frank Family Vineyards team to TWE, including their significant expertise and experience. This is a compelling strategic and financial investment, comfortably meeting our investment criteria and one we expect will deliver attractive growth and financial returns for TWE’s shareholders over the long-term.”
The FFV portfolio includes wines with retail price points ranging from US$38 to $255 per bottle, with all wines across three collections crafted by Frank Family winemaker and general manager, Todd Graff, who will remain with the business.
Ben Dollard, Treasury Americas President said: “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. Rich, Leslie, and the entire Frank Family Vineyard team have built an outstanding legacy that we are excited to nurture for years to come. We are thrilled that Rich and Leslie will continue to be very involved and welcome the FFV team to Treasury Wine Estates.”
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.
Rich Frank said: “Leslie and I look forward to continuing to be a part of the next chapter of Frank Family Vineyards, a business we have spent nearly three decades cultivating into a beloved luxury wine brand. We have prided ourselves on creating a family atmosphere among our staff and our guests and know this legacy will carry on.
“We, along with our team, are excited to remain actively involved with Frank Family, while also taking on new leadership roles with Treasury Americas.”
The acquisition, which includes the Frank Family Tasting Room located at 1091 Larkmead Lane in Calistoga, the Benjamin Vineyard in Rutherford, the S&J Vineyard in Capell Valley, and a portfolio of award-winning luxury wines across three collections, is expected to close in December 2021.