The possibility of an upcoming deal emerged last week with Accolade revealing it was in exclusive discussions to buy the brand, however it added there was “no guarantee that a final agreement will be reached.” This morning Accolade confirmed it had reached an agreement with Grant Burge which would see it take control of the Barossa-based business, its brand and its Krondorf Winery.
The acquisition is expected to be completed in January 2015, assuming it satisfies a number of third-party conditions – the terms of which were not disclosed.
A statement released by Accolade Wines said it was “excited by the opportunity to build on the domestic strength of the brands and grow Grant Burge Wines internationally through its distribution network”, which spans 112 countries.
Grant Burge, a fifth generation family-owned business, produces a broad range of wines from across South Australia with a particularly strong reputation for its Barossa fortified expressions and “icon” wines such as Meshach Shiraz. It is currently run by Grant and Helen Burge who said they were “looking forward to working closely with Accolade and seeing their trophy-winning portfolio becoming more widely known and appreciated outside of Australia.”
Accolade’s acquisition of Grant Burge follows significant investment by its owner, Champ Private Equity, including a £10 million injection to build the Hardys brand worldwide and an £11m bottling line extension at the producer’s UK facility. It also comes within weeks of another major Australian producer, Casella Family Wines, moving to acquire a majority stake in Barossa business Peter Lehmann Wines, further evidencing the the consolidation currently taking place within Australia’s wine industry.
Accolade’s Australian portfolio already includes Hardys, Banrock Station, Omni, Goundrey, Brookland Valley, Berri Estates, Stanley, Amberley, Moondah Brook, Leasingham, Tintara, Reynella, Renmano, Tasmanian label Bay of Fires and sparkling brands House of Arras and Yarra Burn.
source : thedrinksbusiness.com
