North America’s fourth largest wine producer, Vincor International, today announced that it has acquired privately held Kim Crawford Wines of Auckland, New Zealand.
Vincor will pay NZ$14.8m (US$9m) for New Zealand’s 10th largest winery, plus a performance-based earn-out payable in 2008, with a minimum value of NZ$3.2,m for the winery’s founders, Kim and Erica Crawford, who will remain with the business.
Vincor said it will satisfy a NZ$2.0m portion of the purchase price through the issuance of common shares.
“With the acquisition of Kim Crawford Wines, Vincor has successfully expanded operations to another important New World wine region while enhancing its portfolio of international wine brands. This latest addition to the Vincor family of estate wineries adds both scale and excellent brands to the strategic presence we established in the Oceania region with our acquisition of Australia’s Goundrey Wines in November, 2002”, said Donald Triggs, Vincor’s president and CEO.
“Given our longstanding efforts to make Kim Crawford Wines a truly global brand, joining Vincor, with its impressive distribution network in both North America and Australia – two major export markets for New Zealand wine – was the next logical step for us”, said Kim Crawford, founder of Kim Crawford Wines. “We now look forward to realizing the fullest potential of our people and our wines in international markets.”
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Vincor expects this acquisition to contribute approximately C$0.02 – 0.03 to earnings-per-share in the current fiscal year. The cash portion of the purchase price was financed with a portion of the proceeds from Vincor’s February 2002 offering of common shares.
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