US Firm Increases Offer for Treasury Wine Estates

04 Aug 2014 --- US private equity firm KKR has increased its bid for Penfolds wine owner, Treasury Wine Estates, but so far the Australian wine brand owner is holding firm and it believed to be maintaining its efforts to turn around its fortunes.

Despite this, Treasury is believed to be in talks about whether to open its books to KKR and partners Rhone Capital. Treasury said in a statement earlier this week that it would assess KKR’s offer against its own strategy for boosting sales and cutting costs.

An oversupply in the US saw $33m worth of wine being destroyed last year, which the company has since struggled to recover from.
Treasury has brands including Penfolds, Wolf Blass, Linderman’s and Beringer in the US.

Other bidders are expected to emerge, and analysts reportedly believe it is a prime target for private equity.