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Accolade Wines, one of the world’s largest wine companies, has entered into early merger discussions with peer Australian Vintage (AVG), the producer of the McGuigan and Tempus Two brands, according to The Australian Financial Review and The Shout reports.
“AVG confirms it is in exploratory discussions with Accolade, however these discussions are still at a very early stage, and there is no certainty that any transaction will eventuate”, Australian Vintage is quoted as saying in a statement. “AVG will continue to update the market in accordance with its continuous disclosure obligations”.
The move is reportedly part of a strategic review being conducted by Accolade Wines to maximize shareholder value, after it was taken over by investor consortium Australian Wine Holdco (AWL).
Commenting at the time of the AWL acquisition, Accolade Wines CEO Robert Foye said: “Like all Australian winemakers, we have been hit by a number of challenging macro-economic and industry headwinds in recent years. Despite our strong stable of brands and leadership positions in key markets, as well as operational measures taken to strengthen the business, our ability to respond to these challenges and grow has been hampered by an unsustainable balance sheet”.
A combined Accolade Wines – Australian Vintage business would reportedly have an annual revenue of about A$1 billion ($650 million), given that Accolade generated revenue of about A$820 million ($536 million) in 2022.
Source: The Australian Financial Review / The Shout
