Major wine producer and marketer Andrew Peller Ltd. (TSX:ADW) has signed a deal to acquire 100% of Black Hills Estate Winery and Gray Monk Estate Winery and has entered into a letter of intent to acquire 100% of Tinhorn Creek Vineyards, for a combined purchase price of $95 million.
The three estate VQA wineries in British Columbia’s Okanagan Valley generated total revenues of approximately $25 million in their latest fiscal years. The purchase will be funded by a combination of $78 million in cash from the company’s credit lines and $17 million worth of Class A common shares. The company expects to close all of the transactions on or before the end of October 2017.
“We have long admired these leading estate VQA wineries and now it is a privilege to bring their ultra-premium wines and talented people into our family,” said Peller CEO Andrew Peller in a release. “With our investment and resources, these wines have the potential to grow, develop and compete in the growing luxury wine market around the world.”
Black Hills Estate Winery, located on the Black Sage Bench near Oliver, B.C., is one of Canada’s most prestigious wine producers.
“Black Hills has been proud of how we have evolved our quality over the years,” said Black Hills president Glenn Fawcett. “This new partnership allows us access to resources and tools to evolve even further.”
Gray Monk Estate Winery, founded in 1972, is a family-owned and operated winery located in Okanagan Centre in the Lake Country region north of Kelowna.
“We’ve known the Peller family for many years and share and appreciate the same values and approach to quality winemaking,” said Gray Monk Estate Winery co-owner George Heiss. “We are delighted to partner with them to continue the legacy of Gray Monk Estate Winery in the Okanagan.”
Tinhorn Creek Vineyards, located near Oliver, has been family-owned and operated since 1993, and produces both red and white wines in the ultra-premium category sold through its wine club, on-site events, restaurants and wine retailers.
“It has been the honour of my life to have helped build Tinhorn Creek, to make great wines with an attention to sustainability and most importantly, to run our business with empathy toward our employees, our customers and our community,” said Sandra Oldfield, CEO, Tinhorn Creek Vineyards. “Andrew Peller will continue the long term development and growth in the Okanagan that we started.”