Australian-based Treasury Wine Estates has agreed to acquire the majority of U.S. and UK wine operations from Diageo for $600 million. Key U.S. brands to be acquired include Beaulieu Vineyards, Sterling Vineyards, Acacia, Provenance and Hewitt, amongst others.

The cash payment comprises $552 million plus the assumption of capitalized leases of $48 million.

“This acquisition will transform our US business into a larger player of scale in the attractive Luxury and Masstige segments of the high growth US market,” said Michael Clarke, TWE CEO. “The additional supply of Luxury and Masstige wine will be a game-changer for our US brands, providing us with an immediate opportunity to step-change our growth in the US, Canada, Asia and Latin America.”

TWE will also acquire the Blossom Hill wine brand in the UK, the second largest wine brand in the UK by volume and value in FY15.

The acquisition is subject to certain regulatory approvals, including anti-trust approval in the US, and is expected to complete in approximately three months.