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.