Looks like a good acquisition. The strong get stronger in times...

Looks like a good acquisition. The strong get stronger in times of crisis, and I think that TWE's asset recycling strategy is really demonstrating that they're able to navigate these muddy waters.

The price seems reasonable (EV/EBITDA x13.2), particularly if you compare it with other luxury brands ( TWE was PE of c.30 pre Covid; comparing that to other luxury brands, Louis Vuitton / Moet Hennesy c.60; Remy Cointreau c.95; Estee Lauder c.110, even Diageo which is more similar to TWE is at 62 - these figures slightly dated from my research, but point remains valid).

The business strategy of expanding into Chardonay in the US makes sense as they seem to love it there, and their current portfolio is red heavy particularly Cab Sav. But, that's also perhaps a risk - may be good for distribution to have breadth, but it's also not what they're known for. Synergies and value adding by Treasury America to the Frank Family Vineyards distribution will need to be monitored over time - management teams always overcook these at the time of acquisitions.

Overall though, thumbs up for the capital recycling and focus on higher-margin/growth US business. TWE not dead yet.