US: Mondavi expecting up to US$500m from sale
Robert Mondavi Corp. expects the sale of its line of higher-priced wines and other assets within the next year to yield between US$400m and US$500m in net after-tax proceeds.
The winemaker said today that it expects to complete the divestiture of its luxury and non-strategic assets within one year. In a statement, Mondavi president and chief executive Gregory Evans warned, however, that the company was still early in the process.
The Napa, California-based company announced last week that it plans to focus in the future on the premium and super-premium lifestyle wine segments, anchored by its Woodbridge and Robert Mondavi Private Selection brands.
"Premium wine volumes in the US continue to expand at over 4% per year, and the growing population of baby boomers suggests that these trends will continue for the next five years,'' Evans said in the release.
The proceeds from the sale of its luxury wine and other assets will be used, among other things, to boost organic growth, develop new products and expand international business, Evans said.
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