S AFRICA: Winecorp sold to Cape Coastal Vintners
Stellenbosch-based Spier Group has sold its Winecorp business and all non-core wine brands to Cape Coastal Vintners (CCV) for an undisclosed sum.
The deal follows the failure last year of merger talks between CCV and Winecorp. The acquisition is awaiting ratification from South Africa's competition authority, which should arrive by 1 April.
Winecorp would then become a subsidiary of CCV, with Spier continuing to hold a 5% share. UK wine agent PLB, which has joint ownership of Winecorp's Dumisani label, will also have a 5% share in the company.
Under the deal, Spier is set to keep four core wine brands, Spier, Savanha, Sejana and Naledi.
Spier's Winepack production and bottling facility near Paarl also appears likely to close. The group had looked at various options over the past year, including taking a black empowerment partner, a management buy-out and other options.
Spier CEO Vernon Davis told just-drinks today (2 February) that there is an oversupply of bottling in the South African wine industry and it is not a core business. He added that if an alternative could be found he would look at it.
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