Barossa Valley Estate sold
- Wednesday 1 May 2013
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New Zealand-based Delegat’s is to pay AUS$24.7m to acquire Barossa Valley Estate, the Barossa-based co-operative out of receivership, with the deal covering a 5,000-ton winery, a 41-hectare vineyard on an 80ha site and world-renowned brands including E&E, Ebenezer, Barossa Valley Estate, Entourage and E Minor.
The acquisition, which is likely to be completed in June, also includes contracts with BVE’s grower members, and the company’s wine inventory.
Delegat’s said its goal was to establish BVE as a leading super-premium Barossa Shiraz brand in global markets, as well as targeting growth from Barossa Cabernet Sauvignon.
‘These wine styles are complementary to the group’s current business and provide an opportunity for substantial future sales growth globally,’ said Delegat’s group managing director Jim Delegat.
‘The acquisition of the assets of Barossa Valley Estate is an ideal fit with the group’s portfolio of high-quality assets,’ he added.
BVE was established as a co-operative in 1984 by 80 third and fourth generation Barossa grape growers impacted by the decline in red wine consumption.
The co-op established a 50/50 joint venture with BRL Hardy in 1998, but in March 2011, Hardys owner Constellation Brands sold the stake back to the co-op’s holding company.
BVE went into receivership in January this year.
Delegat’s, best-known for making Oyster Bay Sauvignon Blanc, was floated on the NZ Stock Exchange in 2005, but remains two-thirds owned by the Delegat family.