By James Atkinson
Delegat's Group Limited, the New Zealand company behind the Oyster Bay wine brand, has purchased the assets of Barossa Valley Estate (BVE) for $24.7 million.
Woolworths along with Chinese investors were tipped as the most likely suitors for BVE, which entered receivership in February.
But Delegat's this morning announced to the New Zealand Exchange that it had purchased the assets, which include a modern 5000 tonne winery and a 41-hectare vineyard along with assigned grape grower contracts.
Delegat's managing director Jim Delegat told TheShout the company saw BVE as a complementary fit to its established cool climate Oyster Bay business.
"It's an important acquisition for us because it enables us to participate in the iconic Barossa Valley Shiraz market, which is truly recognised globally," he said.
Delegat said he and his colleagues believe that the Australian wine industry is coming out of the bottom of its cycle.
"We see this as a long-term investment and it'll take a year or two in order for us to assemble all the key success factors so that it will deliver substantial incremental value growth."
The deal includes inventory and brands including Barossa Valley Estate and the E&E label.
As well as expanding its production of premium Shiraz, Delegat said the group will also target growth from producing and marketing world-class Cabernet Sauvignon from the Barossa region, as well as Grenache Shiraz Mataro blends.
Sam Davies, partner of BVE receiver McGrathNicol, thanked BVE’s third party grape growers, who he said worked hard during the 2013 vintage and are supportive of the sale.
"This sale reflects a fantastic outcome for all BVE stakeholders and we hope acts as a catalyst for improvement in Barossa Valley winery values going forward," he said.
Settlement of the deal is expected to occur in June.