CHAMP-backed Accolade Wines acquires Australian competitor
Accolade Wines, an Australian wine producer owned by CHAMP Private Equity, has agreed to acquire domestic peer Fine Wine Partners from Japanese-owned food and beverage company Lion.
Financial details and terms of the sale were not disclosed, although it has been estimated to value around A$100 million ($76 million), according to The Australian Financial Review. The ownership transition is expected to be finalized within six months.
The deal includes transfer of all the plants, equipment, land, vineyards and inventory associated with six fully-owned Fine Wine brands as well as an on-and-off-premises distribution network. It is expected to allow for an expansion of the company that will take advantage of a growing premium wine segment related to desirable viticultural regions.
"Lion has a range of competing opportunities for investment in its core categories of beer and cider and has been unable to prioritize the investment required to grow Fine Wine Partners to a size justifying its fixed cost base," Lion CEO Stuart Irvine said in a statement. "With the improvement in market conditions we have come to the decision that this is the right time to realize a fair price for the business."
Accolade claims to be the largest wine company by volume in Australia and the UK and is said to generate an annual net profit of A$70-75 million. It sells products in over 80 countries and has about 1,800 employees in Australia, Asia, the UK, Europe and South Africa.
CHAMP bought an 80% stake in the company for $290 million in 2011 from US-based Constellation Brands, which retained the remaining 20% interest. The GP's objective was to create a leader in new world wines in part through a string of bolt-on acquisitions.
Last year, CHAMP made a partial exit from the company by agreeing to sell a 50% holding in Matthew Clark, a UK-based drinks wholesaler under the Accolade umbrella. The private equity firm reportedly began considering IPO and trade sale options for the business in late 2015; recent speculation has focused on potential Chinese strategic buyers such as China Resources Group.
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