SYDNEY, July 21 (Reuters) - Australia's Treasury Wine Estates Ltd TWE.AX , the world's biggest listed standalone wine firm, said on Tuesday it will sell its Asti Winery, Souverain brand and vineyard assets in California to E.& J. Gallo Winery.
The sale price was not disclosed, but Treasury said it would book a pre-tax loss on the disposal of about $7.5 million.
Under the agreement, Treasury will enter into a long-term leaseback of part of the vineyard that has traditionally provided the Melbourne-based company with high-quality fruit.
The maker of the Penfolds, Beringer and Wolf Blass brands is trying to expand its high-end offerings in the United States where an unsuccessful expansion plan resulted in the destruction of thousands of cases of cheap wine. ID:nL4N0W100S