Treasury Wine Estates (TWE) is continuing to shrink its asset portfolio with the sale of its Seppelt assets to the owner of Stonier Wines.
The deal is expected to close midway through next month; it comes as the Penfolds owner looks to achieve $100 million in savings on the balance sheet following a year-end loss of nearly $650 million.
TWE told investors that these savings would come from the ‘non-core’ parts of its portfolio. The sale includes the 160-year-old Seppelt winery in Great Western, Victoria, its namesake brand, and the Drumborg vineyard near Portland.
TWE bought Seppelt in 2011 from the Foster’s Group.
Aaron Drummond, the CEO and co-owner of Mornington-based Stonier, is the lead investor behind the Seppelt purchase. Angus Lilley, TWE’s MD of ANZ, said the deal will keep Seppelt in Victorian hands.
“Seppelt holds a distinctive place in Australian wine, with a proud history shaped by generations of winemakers, viticulturists and people across the business and its local communities,” he added.
“For the people who know and love Seppelt, it’s a positive move that keeps the brand in Victorian hands. Its wines, heritage and place in the history of Australian wine are at the heart of what makes Seppelt special, and Aaron and his team are well placed to carry that forward.”
