AUS/NZ: Delegat Group to buy Barossa Valley Estate
Australian producer Barossa has been rescued by Delegat
Delegat Group is set to acquire the assets of troubled Australian winemaker Barossa Valley Estate for AUD24.7m (US$25.5m) in cash.
In a filing to the New Zealand stock exchange late last week, Delegat, producer of Oyster Bay, said it has entered into an agreement to buy Barossa's full assets through the company's receivers. Barossa appointed receivers in January, with the group branded as "under capitalised".
The deal includes the south Australian group's 5,000-tonne winery, vineyards, grape grower contracts, inventory and namesake wine brand and E&E.
Delegat said it aims to build on Barossa's status as a Shiraz producer and develop its super premium Shiraz brand in global markets. The group will also target growth from Barossa's Cabernet Sauvignon, it added.
"These wine styles are complementary to the group's current business and provide an opportunity for substantial future sales growth globally," said Delegat's MD, Jim Delegat.
The acquisition is a "long term investment in growth that will be funded through existing bank facilities", the company said.
The deal is expected to complete in June.
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