Diageo Announces Sale Of Non-core Assets - Quick Facts

(RTTNews) - Diageo plc (DGE.L, DEO) announced it has agreed the sale of its major wine interests in an agreement with Treasury Wine Estates relating to the US based Chateau and Estate Wines and the UK based Percy Fox businesses for a consideration of $552 million.

Diageo said the net proceeds of approximately 320 million pounds, after tax and transaction costs will be used to repay borrowings.

Following completion of the transaction, Diageo's wine interests are limited to Justerini & Brooks Wine Merchants, the Argentinian wine business of Navarro Correas, the wine brands of Mey Icki and USL, the Chalone brand and assets and the Acacia winery and vineyard.

Ivan Menezes, Chief Executive of Diageo, said: "Wine is no longer core to Diageo and this sale gives us greater focus. With the completion of this transaction Diageo will have released 1 billion pounds from the sale of non-core assets since the start of the financial year."