CHAMP PE-backed Accolade Wines in China acquisition

Accolade, perhaps best known for the Hardys wine brand, already has a relationship with CWC, which has been distributing the South Australia-based company's wines in China and Mongolia for a number of years. CWC's current owners, including Bong Ha, the manager, will retain a minority stake in the company and remain involved in operations.

"Accolade Wines' diverse portfolio of wines from multiple geographies and outstanding wine-making expertise means the company has the capacity to not only offer its existing wines to Chinese consumers but to work with us to develop wines specifically for the Chinese market," Ha said in a statement.

Accolade came into being after CHAMP bought Constellation Brands' UK and Australian interests, including its South African brands, wineries and vineyards, in January 2011 for approximately $290 million. Constellation Brands owns 20% of Accolade, with CHAMP controlling the remainder. In November, GE Capital extended a GBP150 million ($234 million) cross-border financing facility to Accolade, to be used to supplement working capital and capital expenditure as it grows internationally.

Australian wine assets have attracted considerable attention from strategic and private equity buyers. Early in 2011, Archer Capital exited Cellarmasters - which it acquired from Foster's Group in 2007 through a management buyout - to Australian retail giant Woolworths for A$340 million.

Another Foster's Group unit, Treasury Wine Estates, was spun out last year. KKR, TPG Capital and Cerberus Capital Management were all reportedly interested in the asset, with the latter tabling a buyout offer of A$2.5 billion. It was dismissed by Foster's as too low. China's Bright Food Group was linked to a potential bid a few months later. It went on to purchase CHAMP's 75% stake in Manassen Foods.

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• Topics
• Australasia
• Greater China
• Buyouts
• Consumer
• Australia
• CHAMP Private Equity
• buyout
• Consumer
• China