Oct 14 (Reuters) - Treasury Wine Estates Ltd TWE.AX :
* Twe announces acquisition of diageo's wine business TWE.AX
* Deal for for a cash payment of US$552 million
* Says agreed to acquire the majority of assets from Diageo (L:DGE) plc's US and UK wine operations
* Says total annual cash synergies of at least US$25 million (A$34 million) expected before fy20
* Says twe expects to fund the acquisition via a fully underwritten 2 for 15 pro-rata accelerated renounceable entitlement offer
* Says expected to enhance both roce and ebits3 margin before fy20 as results and synergies are delivered
* Is expected to deliver twe low double digit percent eps accretion in first FY following the acquisition (FY 2017) including phased synergies
* Acquisition is expected to immediately double twe's americas luxury and masstige net sales revenue
* Says twe expects FY 2016 ebits to be in the range of A$270 million - A$290 million, prior to the impact of the acquisition
* Says "also announces an improved financial outlook"
* First FY of trading following completion of acquisition, expects 75% of gross profit from acquired Diageo wine business will be luxury and masstige
* Deal also includes assumption of capitalised leases of US$48 million
* Source text for Eikon ID:nASX7yH30t