Global Wine Ventures has lined up the acquisition of Australian wine company Sticks.

The North Adelaide-based company has said it will buy the company, which consists of a 4,000-tonne winery, a bottling line and 24.5 hectares of vineyard, for A$10m (US$8.6m). The transaction will be funded through a combination of debt and equity, with A$7m being raised through an underwritten share placement.

"The signing of the term sheet signals the beginning of a new 'boutique' Australian public wine company focused on brand and asset growth and development within the Australian and New Zealand wine industries," said GWV's managing director, Sam Atkins.

GWV will focus on export markets for growth of Sticks' wine brands. The purchase is set to complete at the end of March.

In February last year, GWV posted a loss of A$449,054 for the second half of 2006. This compared to a profit of A$15,567 in the corresponding period in 2005. The loss came from a fall in sales for the period of 67% year-on-year to A$422,434.