Australian wine producer Accolade Wines announced today that it will acquire Fine Wine Partners (FWP) from Japanese-owned food and beverage company Lion. The transaction has been estimated to value around A$100 million ($76 million).
After the transaction, Accolade will have control of FWP’s brands including Petaluma and Croser in the Adelaide Hills, St Hallett in the Barossa Valley, Knappstein in the Clare Valley, Tatachilla at McLaren Vale and Stonier on the Mornington Peninsula.
The sale also entails Lion’s four Australian wineries, including plant and equipment, land and vineyards, inventory, and distribution network.
“Lion has a range of competing opportunities for investment in its core categories of beer and cider and has been unable to prioritise the investment required to grow Fine Wine Partners to a size justifying its fixed cost base,” Lion chief executive Stuart Irvine said, as quoted by the Australian.
“With the improvement in market conditions we have come to the decision that this is the right time to realise a fair price for the business.”
Accolade is 80 per cent owned by CHAMP Private Equity. The company has a large commercial wine operation at the lower end of the market, and has made several acquisitions in the past five years at the premium end of the sector to rebalance its portfolio.
“Over the last five years, we have experienced significant growth and expanded our global footprint through the acquisition of Geyser Peak in the United States, Grant Burge Wines in Australia, Mud House in New Zealand and Vina Anakena in Chile,” said Accolade Wines deputy chief executive Michael East.
“The acquisition of the FWP business and brands will strategically enhance Accolade Wines product leadership, complementing our current brand portfolio, while integrating seamlessly into our business model,” he added.