Drinks group Diageo has completed the sale of its US and UK wine interests to Treasury Wine Estates in a deal valued at $552 million (€506m).
The deal, which was announced in October, saw Treasury buying the US-based Chateau and Estate Wines and the British-based Percy Fox businesses from Diageo.
The group plans to use net proceeds of about £320 million after tax and transaction costs, to repay borrowings.
Diageo, which owns the Guinness, Smirnoff Vodka and Johnny Walker whiskey brands, has been trying to shed a number of non-core assets in recent months. It recently announced it was selling stakes in two beer brewers to Heinken for $780.5 million.
Treasury, the world’s biggest standalone wine maker, announced a fully underwritten rights issue to raise around A$486 million ($350 million) to fund the acquisition in October.
The company said the purchase of brands including Sterling Vineyards, Yellow Tail, Blossom Hill and Piat d’Or, would immediately double its luxury and “masstige” - or mass prestige - net sales revenue in that country.
Additional reporting: Reuters