Knightsbridge Fine Wines Inc. announced yesterday that it has signed a letter of intent to purchase a controlling interest in a number of wine-producing and distribution businesses in Spain.
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The group of Spanish businesses, owned by Manuel Fernandez-Aviles Zamorano of Madrid, currently has approximately US$13.5m of sales nationally. Among the brands within the group are Castilla La Mancha, Ribera del Duero and Rioja. These are produced under the brand names of Camino de la Dehesa, Dehesa de la Jara, Barbechera, Cacharel, Campo Alto, Castillo de Madroniz, Valdelamillo and Catania among others. The group maintains a direct sales force selling to supermarkets, retail chains and other significant volume buyers.
Also expected to be included in the acquisition are assets consisting of land and wine inventory valued at approximately €7.5m.
The purchase price for the proposed acquisition is expected to consist of €4m in cash and €2m worth of common stock of KFW. The value of the common stock is expected to be calculated based upon the average market price of the KFW shares for the preceding 21 trading days prior to completion of the proposed acquisition.
“This is an important extension to our business, since Spain is the fifth largest wine market in the world. We have extended a very warm welcome to Senor Fernandez-Aviles and his talented team into the Knightsbridge Fine Wines family of companies,” stated Jake Shapiro, Chairman and CEO of KFW.
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By GlobalData“ Our mutual expectations are for significant growth in three main directions: The Spanish national market with our own local production, and export of our Spanish production utilizing the international marketing capability of KFW, and imports into Spain from around the world, from direct KFW global operations and of those third party producers that are presently represented by these companies in Spain.”
Legal and accounting due diligence is under way with an expectation to complete the acquisition early in the New Year.
