Reynella based Accolade Wines is set for a $1 billion float next year
REYNELLA-based Accolade Wines looks set to list early next year in a $1 billion float five and a half years after being acquired by Champ Private Equity.
REYNELLA-based Accolade Wines looks set to list early next year in a $1 billion float five and a half years after being acquired by Champ Private Equity.
Accolade is Australia’s second largest wine company, with 1600 employees worldwide and brands including Hardy’s, Leasingham, Grant Burge, which it acquired in 2014, and South African, North American and New Zealand brands.
Its history dates back to 1854 when Thomas Hardy planted vines at Underdale.
It is understood the global headquarters of Accolade will remain at Reynella, following the $1 billion float scheduled for the first half of 2017.
The company claims to be the fifth largest wine company in the world, with 45 brands, sold across more than 140 countries, a UK bottling plant capable of producing 600,000 bottles a day and the largest cask manufacturing plant in Australia at Berri, where it can fill 85,000 casks per day.
It is understood a decision is yet to be made as to whether the company will be listed in Australia or the UK.
CHAMP bought 80 per cent of the business from Constellation Brands in 2011 for just under $300 million.
It is now generating $70-$75 million profit per year, and CHAMP has invested more than $50 million in the business since taking over.
The high-end wine sector has had a resurgence in the past couple of years, with Penfolds producer Treasury Wine Estates more than doubling in value to be trading at xxx now. That company fended off a takeover bid from KKR in 2014 for just $5.20 per share.
While Accolade does not have a Penfolds equivalent in its stable, it has moved up-market as evidenced by the purchase of Grant Burge.
A firm date for the release of a prospectus has not been set.