Australian Vintage has announced the sale of its Loxton Winery to The Wine Group as part of efforts to restructure its business.
//i2.aroq.com/1/av_logo.jpgAssets related to Austflavour are included in the deal, said Australian Vintage today (12 August), without disclosing financial details of the sale. It expects to complete the disposals by 18 August.
The deal is part of the McGuigan wine producer's restructuring programme in Australia, amid ongoing tough industry conditions. "The sale of the Loxton winery is the most important step in executing our strategy to be the lowest cost premium wine producer," said group CEO Neil McGuigan.
"It follows the exit of underutilised assets over the past three to four years, including the Lenswood Winery, Griffith Winery and Hunter Ridge Winery," he said. Proceeds from the sale will be used to pay down debt, the group said.
It added that it has signed a lease deal with The Wine Group for Australian Vintage to occupy the Austflavour area of the Loxton Winery until January 2012. Australian Vintage has retained the Austflavour business and staff, despite agreeing to sell the assets.
Australian Vintage has also signed a three-year storage deal with The Wine Group at Loxton. Meanwhile, The Wine Group will offer employment to all existing staff at Loxton. At the same time, Australian Vintage will retain grape grower contracts in the Riverland region.
Loxton has a capacity of 90,000 tonnes.
Sectors: Wine
