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18 November 2021 TREASURY WINE ESTATES ASX ANNOUNCEMENT TWE announces the acquisition of Frank Family Vineyards in the United States for US $ 315m Announcement highlights • • • Treasury Wine Estates Limited ( ASX : TWE ) has reached an agreement to acquire Frank Family Vineyards ( " FFV " ) in the United States Transaction value US $ 315m , implying an EV / F21 EBITDAS acquisition multiple of 13.2x , favourable to both current TWE and historic luxury wine transaction multiples FFV is a highly - acclaimed luxury wine business based in the Napa Valley , California , with a long - term track record of delivering strong revenue and EBITS growth in addition to EBITS margins in the range of 35-40 % • The FFV portfolio is highly complementary to Treasury Americas , filling a key portfolio gap for luxury chardonnay , and Treasury Americas is well placed to enhance FFV's growth given its leading luxury sales credentials , national distribution network and Californian asset base and sourcing model • • • EPS accretive from the acquisition date¹ , with EBITS growth expected for FFV from F23 , the first full year of ownership The acquisition will be funded via a combination of debt and cash , including proceeds from recent US asset divestments Reflects TWE's strategic approach to capital allocation , with Treasury Americas having replaced divested low margin , commercial assets with a sustainably growing , high margin luxury business • The acquisition is expected to be completed in December 2021 , with a commitment to genuine ongoing involvement in the Treasury Americas business by FFV's founders Rich and Leslie Frank • TWE has substantially completed its program to divest non - priority US portfolio brands and assets , with total net cash proceeds of approximately A $ 300m now confirmed 1 Before material items and SGARA TREASURY WINE ESTATES LIMITED ABN 24 004 373 862 LEVEL 8 , 161 COLLINS STREET MELBOURNE VIC 3000 AUSTRALIA WWW.TWEGLOBAL.COM