Struggling SA winery bought by Delegat

Barossa Valley Estate has been saved from receivership by Delegat’s recent acquisition of the struggling winemaker.

The Australian company boasting prestige wines such as the E&E Black Pepper Shiraz, was snapped up for $A24.7 million by Auckland-based Delegat, according to news.com.au.

The deal is said to include ownership of a 5,000t winery, a 41ha vineyard in the Barossa Valley, grape grower contracts, inventory and brands.

The purchase is believed to bring strong strategic value to Delegat’s growing portfolio with wine styles that are complementary to the current business, as well as holding the potential to deliver significant growth and future sales.

"The acquisition of the assets of Barossa Valley Estate is an ideal fit with the group's portfolio of high quality wine assets," said managing director, Jim Delegat.

As well as the recent purchase of the Barossa-based company, Delegat has also acquired rival vineyards including Matariki Wines and Stony Bay Wines.

Delegat’s shares have risen 28 percent in 2013, with shares currently at $3.78.

The takeover is expected to be settled June.

Earlier this year, Barossa Valley Estate was placed in receivership with debts reportedly totalling $120 million.

Fellow winemakers, De Bortoli and Casella have also had a difficult start to 2013, with De Bortoli recently announcing a profit loss of more than $24.7 million, and Casella suffering its first loss in more than two decades.

 

Asahi buys Aussie brewer

Independent Distillers, a wholly owned subsidiary of Japanese beverage giant Asahi, has snapped up local brewer Cricketers Arms as it expands its footprint in the local market.

In a statement Independent Distillers and Asahi Premium Beverages CEO Greg Ellery said the craft beer was a perfect addition to the group's portfolio.

 

“As our company continues its drive to enhance its business model across the total alcohol beverage sector, the acquisition of Cricketers Arms bolts on perfectly to the expansion of our on-premise and total beer offering, providing our company with the impetus to become a much larger player,” he said.

 

The deal marks the first beer acquisition by Independent Distillers since it was acquired by Asahi in September 2011.

 

Along with the Cricketers Arms move Ellery said the group would be on the hunt for more acquisitions, and the growth strategy had strong support from Asahi.

 

"Our beer / cider portfolio is now very powerful, covering off most sectors of the market — Asahi Super Dry in the super premium segment, Kingfisher in the mid-priced International sector, Cricketers Arms in the mainstream craft and of course Somersby for imported cider,” he said.

 

Cricketers CEO Paul Scott said the acquisition marked an “exciting time” for the craft brewer, and the company was working on expanding its product range and market share.

 

Along with the new purchase, Ellery said Independent Distillers was undertaking a major upgrade of its facility in Laverton.

 

“To be completed by September, this upgrade includes investment in a brand new, high speed and high volume keg line, new fermentation vessels and a new yeast propagation plant incorporating all relevant infrastructures,” he said.

Capilano to enter WA market

Capilano Honey has announced it will acquire a number of WA honey company Wescobee's assets.

According to the company it will merge Wescobee's honey packing and distribution operations similar to Capilano's operations.

The proposed merger is still subject to the completion of due diligence on the assets and the overall business operations of Wescobee, and the negotiations of terms of the lease by Capilano of the factory premises that are currently owned by the WA honey company.

Wescobee sells predominately to WA and overseas.

According to Capilano it is acquiring the assets as "Capilano does not have any operational presence in Western Australia".

Pro-Pac acquires two companies

Continuing its consolidation strategy today Pro-Pac Packaging acquired the business and assets of Source and Sell and Stronghold wholesale.

To date, Source and Sell have supplied packaging products to the food industry while Stronghold Wholesale is a niche distributor of industrial strapping, stretch wrap and tape products.

The combined revenue of the two acquisitions is estimated to be $10 million per annum.

Commenting on the acquisitions was Pro-Pac’s CEO, Brandon Penn, who said they provide “good cross-selling opportunities as both businesses bring together new customers and new products”.

“The purchase of these businesses provides Pro-Pac with further critical mass at the respective regional operations,” he said.

The announcement comes after Manufacturers’ Monthly reported PaperlinX would acquire Canterbury Packaging NZ.

The New Zealand firm is a distributor of industrial packaging consumables, hygiene, safety, and hospitality products, and has an annual turnover of around $2.9 million.

At the time Andy Preece, ANZA region executive general manager, stated that "the acquisition of Canterbury Packaging is a small but significant further step in our diversified products strategy.

"This acquisition will provide a building block for Spicers NZS to diversify….the additional packaging consumables will build on the existing strong market position of Spicers," Preece said.

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