Australia's Treasury says considering acquisitions in U.S.

SYDNEY Wed Aug 20, 2014 10:10pm EDT

Related Topics

SYDNEY Aug 21 (Reuters) - Australia's Treasury Wine Estates Ltd, which is the subject of two $3.1 billion takeover proposals, is considering making acquisitions in the United States to accelerate growth, chief executive officer Mike Clarke said on Thursday.

Clarke said the company is considering "organic and inorganic" growth opportunities in the United States after swinging to a A$100.9 million net loss for the year to June 30, from a net profit of A$47.2 million the previous year.

"We believe that there is an opportunity to accelerate our growth, particularly in the area of masstige and luxury in America," Clarke said, referring to the company's mass prestige wine portfolio.

"It could be acquisition, it could be alliance, it could take a number of different forms. You can rest assured it's going to be financially accretive."

The annual net loss included a A$281 million impairment charge on the valuation of historic acquisitions, particularly in the United States, where the previous year it made writedowns for destroying thousands of cases of unsold wine.

(Reporting by Byron Kaye; Editing by Stephen Coates)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.