The Canadian wine company Vincor International, announced today that it is to buy the privately owned Goundrey Wines in Australia for about C$54m (US$34m).
 
Calling the move "an important milestone in our international growth strategy to expand operations to all New World wine regions" Vincor president Donald Triggs said: "Australian wine is the fastest growing segment of the international wine market and Western Australian wineries, Goundrey in particular, continue to demonstrate the ability to produce and market large quantities of premium and super-premium branded wines."
 
Sales volume for Goundrey has grown from 17,000 cases in 1995 to expected sales of over 260,000 cases in the current year, 85% of which is in the super-premium category. As a result, Goundrey is one of the largest producers of Western Australian premium and superpremium wine for the Australian market.

Vincor expects the acquisition to contribute two to four cents to earnings per share in the current fiscal year and 15 cents per share in fiscal 2004. The purchase price will be financed with a portion of the proceeds from Vincor's February, 2002, offering of common shares.

The acquisition is subject to customary closing conditions including the approval of the Western Australian liquor licensing authority. Vincor anticipates completing the acquisition by the end of October, 2002.