Five months after listing on the Australian Stock Exchange, Banksia Wines has bought the Adelaide winery Hillstowe for $A4 million ($2.08m).

The only physical asset was Hillstowe's inventory valued at $A1 million ($0.77m), with the balance paying for the brand and goodwill. Banksia Wines, also Adelaide based, already has the Tatachilla and St Hallett labels.

Banskia managing director Keith Smith said the acquisition was earnings positive from day one. Behind the decision was Hillstowe's export success with a third of its table wine production, 12,000 cases last year, going to the UK and US.

Banksia listed at 85c per share, and after the acquisition rose 1c to 75c,one of the very few Australian listed wineries trading at a discount.