Foster’s wine in the sights of US private equity businesses

first_img whatsapp KCS-content Monday 20 September 2010 8:57 pm Foster’s wine in the sights of US private equity businesses Show Comments ▼ Tags: NULLcenter_img Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofTortilla Mango Cups: Recipes Worth CookingFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family ProofCheese Crostini: Delicious Recipes Worth CookingFamily Proof by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastNoteabley25 Funny Notes Written By StrangersNoteableyMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.com PRIVATE equity firms Kohlberg Kravis Roberts and TPG have held early talks about teaming up to bid for the wine unit of Australian brewer Foster’s.The pair are yet to decide whether to proceed either together or separately, according to reports in Australia.In 2007, KKR and TPG united to take Texas-based Energy Future Holdings, formerly TXU, private in the largest leveraged buy out ever. The latest talks come after Foster’s rejected a private equity offer this month worth up to $2.5bn (£1.6bn) for its underperforming wine business, saying the bid was too cheap. Foster’s wants to continue with plans to separate its beer and wine businesses, with top brands including Penfold’s, Beringer and Wolf Blass, after spending around A$7bn (£4.2bn) buying wine assets at the top of the market.The wine business, rebranded as Treasury Wine Estates, is seen as attractive to buyout firms because of depressed earnings at the weak point of the wine-making cycle, and strong brands.TPG had held about 55 per cent of Beringer with some partners when it sold to Foster’s in 2000.Last year KKR bought the South Korean subsidiary of Oriental Brewery from Anheuser-Busch InBev. Meanwhile, SABMiller, one of the world’s largest brewers, was reportedly mulling a $10.9bn acquisition of Carlton and United Breweries (CUB), the beer making arm of Fosters Group Ltd. However, no official offer has been forthcoming. Share whatsapplast_img

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