AUSTRALIA: Newly formed Banksia may hunt with $60m floatation
With an injection of A$6m in working capital from the International Wine Fund and investment bank Grant Samuel, the Tatachilla and St Hallet wineries formally merged this week, naming the new company Banksia Wines.Banksia's managing director, Keith Smith, immediately signalled an expansion plan aimed at creating a regionally-based portfolio of brands.Funds would probably come from an IPO 'at an appropriate time', he said, or equity could be raised independently if suitable acquisitions were found before Banksia went public.Reports say that a possible IPO could come this year to produce a company capitalised at A$60m. The move would mark the biggest Australian wine float sine BRL Hardy's A$67m offering in 1992.Preferred regions for expansion are understood to be in South Australia where Banksia's two founder companies are also based, Tatachilla at McLaren Vale and St Hallet in the Barossa Valley.Combined output from the two wineries is currently 300,000 cases and the equivalent of 65,000 cases in bulk wine. Banksia's aim is understood to be to eventually lift production to 1m cases, switching its bulk production to premium wines.Current exports are mainly to the UK (60%) and the US (25%) with New Zealand taking about 10% and Germany about 5%.The International Wine Fund (IWI) and GS Private Equity, part of the Grant Samuel Group, have each invested A$3m in a mezzanine debt facility which will fund the merger, with the option to covert to equity.The investment by IWI, formerly the Australian Wine & Horticulture Funds, a 13.5% shareholder in BRL Hardy, comes after last week's announcement that it had made its first international investment, a $A1.3m stake in Chablis/Languedoc-based Groupe Laroche.
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-drinks gives you the widest beverage market coverage.
Paid just-drinks members have unlimited access to all our exclusive content - including 16 years of archives.
I am so confident you will love complete access to our content that today I can offer you 30 days access for $1.
It’s our best ever membership offer – just for you.
Olly Wehring, editor of just-drinks
- Carlsberg's Q4 & full-year results - Preview
- Six key trends for alcoholic drinks in 2016
- Key trends for beer in 2016 - Focus
- Aus wine industry pays price for past failures
- Ten things to know about spirits in the US
- William Grant & Sons restructures US team
- Diageo completes wine category exit in US
- Beam Suntory targets Kenya with Edrington/FIX
- SABMiller's Europe chief to join Britvic board
- Diageo's Oban Little Bay single malt Scotch - NPD
- Global travel retail insights - market forecasts, product innovation and consumer trends
- What Next for Beer and Brewers Following the MegaBrew Deal?
- Global Beer Trends 2015 : Global Beer Trends and Long-term Forecasts
- Global Whiskey Market 2016-2020
- Global sparkling wine insights - market forecasts, product innovation and consumer trends research