By Amelia Ball
Australian Vintage, formerly McGuigan Simeon Wines, has announced the $60m sale of its Loxton Winery and Austflavour business to Indian winemaker and exporter, Indage Holdings.
The proposed sale is subject to Indage Holdings satisfying due diligence over the next month, and the signing of a wine and contract processing agreement.
Indage Holdings chairman, Sham Chougule, said the proposed acquisition would expand the company’s winemaking amenities with quality fruit, facilities and people.
“Loxton’s additional capacity will allow us to meet the increasing demand in India and other countries for quality wine,” he said.
Australian Vintage CEO, Dane Hudson, acknowledged the important contribution Loxton’s staff had provided to their business, with Indage Holdings intending to offer positions to all existing winery employees.
The sale is in line with Australian Vintage’s strategy to become the lowest cost producer of quality wine in Australia, and follows the exit of under-utilised assets over the past six months, including Griffith Winery and Hunter Ridge Winery, vineyard and warehouse.
The funds from the Loxton sale will be reinvested to expand operations in the Mildura region and pay off debt.
Existing grower contracts held by Loxton Winery will be included in the sale.