Delegat’s Snaps Up Aussie Winery
Auckland-based Delegat’s Group has bought the assets of Australia’s Barossa Valley Estate out of receivership for $24.7 million, according to Australia’s Courier Mail. The winemaker, whose stable includes the Oyster Bay brand, will acquire a 5000-tonne winery, a 41-hectare vineyard in the Barossa Valley, grape grower contracts and inventory and brands, it said in a statement. The deal is expected to be settled in June, and will be funded through existing bank facilities. ‘The acquisition of the assets of Barossa Valley Estate is an ideal fit with the group’s portfolio of high quality wine assets,” managing director Jim Delegat was reported as saying in the Courier Mail. ‘These wine styles are complementary to the group’s current business and provide an opportunity for substantial future sales growth globally.’ The Barossa Valley Estate winery has processing facilities capable of crushing up to 4000 tonnes of grapes. The Mail said that Barossa Valley’s wines include the E&E Black Pepper Shiraz, which retails at $89.99 a bottle for the 2006 and upwards of $150 a bottle for earlier vintages. Delegat’s has been buying up rival wineries in recent months, purchasing the Hawke’s Bay assets of Matariki Group for $8.5 million in January, and two Marlborough properties in the latter half of last year. It is understood that Delegat’s beat out Woolworth’s and some overseas interests, including Chinese firms, to purchase Barossa Valley.