Barossa winery Peter Lehmann Wines sold to NSW family owned company Casella Wines
FAMOUS Barossa Valley winery Peter Lehmann Wines will be sold for $57 million to a NSW company — one of whose founders faced court this week over his alleged involvement in a drug syndicate.
FAMOUS Barossa Valley winery Peter Lehmann Wines will be sold for $57 million to NSW company Casella Wines — one of whose founders faced court this week over his alleged involvement in a drug syndicate.
The business was founded by Peter Lehmann 35 years ago and the sale follows the death of the so-called Baron of the Barossa in June last year.
His son and managing director from 1990 to 2010, Doug Lehmann, died in June this year.
Casella Wines is best known for its Yellow Tail brand, however founding brother Marcello Casella was before a Sydney court on Wednesday charged with offences including cultivating a commercial quantity of cannabis and participating in a criminal group.
Casella Wines managing director John Casella said he could not comment about his brother’s case yesterday.
Marcello Casella, 54, ceased being a director in February, two weeks after police raided a property in Griffith, NSW.
“I shouldn’t say anything because he’s my brother and it’s before the courts,” Mr Casella said.
“He was a director of Casella Wines until early this year, but he’s not now.”
Peter Lehmann’s widow, Margaret, said the court case was irrelevant to the sale of Peter Lehmann Wines to Casella.
Mrs Lehmann will sell her 10.4 per cent stake, happy in the belief that her late husband would approve of the deal.
“He would say that given the range of choices, you chose well,” Mrs Lehmann said. “He’d be happy to have it in private ownership and in Australian hands.”
Mrs Lehmann said she would continue to be heavily involved in community activities, and the lives of her 12 grandchildren and two great grandchildren.
The purchase of the business from majority shareholder the Hess Group (86 per cent), and Mrs Lehmann, is expected to be completed next month.
Another 400 shareholders, from the days when Peter Lehmann Wines was a public company, own the remaining few per cent.
Mr Casella said the company planned to bring grapes from some of its other South Australian vineyards to help double the amount of wine produced at Peter Lehmann Wines next vintage.
He said the Casella group (including Peter Lehmann Wines) will handle about 180,000 tonnes of grapes (more than 10pc of the Australian crop) next vintage as it challenges Treasury Wine Estates for the position of Australia’s second largest wine company.
Mr Casella said it sells 12 million cases of wine a year of which 95 per cent is sold to export markets and he believes it can lift sales of Peter Lehmann wines to the large United States market.
“We have made this investment because we believe the wine industry is turning and we are confident about the future,” he said.
Casella has a turnover of $370 million and employs 600 permanent employees, while Peter Lehmann Wines employs 80 people.
The sale of Peter Lehmann Wines comes little more than a decade after the Hess Group acquired 85 per cent of the SA winery for more than $100 million in a friendly takeover.
Peter Lehmann Wines board yesterday (Thursday) advised shareholders it has received a proposal from Casella Family Brands to buy 100 per cent of the outstanding shares of the company for $1.50 a share, valuing it at $57 million.
The Peter Lehmann board said it has been advised it is the intention of the company’s majority
shareholder The Hess Group Australia Pty Ltd and substantial shareholder Margaret Lehmann to accept the Casella offer.