Paragon Wine Estates, part of Endeavour Group, has acquired Oakridge Wines as the group looks to bolster its portfolio before the demerger later this year.
Oakridge Wines expands the Paragon Wine Estates regional coverage with brands across five premium wine regions in Australia and New Zealand; Oakridge Wines (Yarra Valley), Chapel Hill (McLaren Vale), Isabel Estate (Marlborough, NZ); Krondorf (Barossa Valley), and Riddoch (Coonawarra).
The purchase includes the brands and the winery, vineyards (20.8 hectares plus 16.6 hectares leased) and its grape grower relationships as well as award-winning restaurant and cellar door.
Endeavour bought Chapel Hill from Swiss company Permafix in September 2019.
http://www.foodanddrinkbusiness.com.au/news/chapel-hill-joins-the-endeavour
At the time Endeavour Group managing director Steve Donohue said it was an important step “in further enhancing our wine business ahead of the proposed transition of Endeavour Drinks to a stand-alone business after the planned merger with ALH in 2020.”
In July 2019, Woolworths Group announced it would combine its drinks and hospitality businesses, Endeavour Drinks and ALH Group, respectively, into a single entity and then separate the business through a demerger.
http://www.foodanddrinkbusiness.com.au/news/woolworths-to-spin-off-alh-endeavour
Woolworths said the merger would create Australia’s largest integrated drinks and hospitality business. Endeavour Group would have 1500 BWS and Dan Murphy’s stores and 327 ALH hotels. ALH retail drinks outlets currently make up approximately 35 per cent of Woolworths Group retail drinks sales with 86 Dan Murphy’s and 512 BWS stores owned by ALH at the end of March 2019. Sales were expected to be around $10 billion and EBITDA1 of $1 billion.
Other businesses to be included in the merger include Endeavour Drinks’ own and exclusive brands business, distribution and partnership channel Pinnacle Drinks; Langton’s fine wine auction and retail business; Cellarmasters wine subscription business; and an 8.7 per cent stake in ALE Property Group.
The merger/demerger was put on hold due to COVID-19.
In February this year, Woolworths confirmed it was going ahead with the Endeavour demerger through an in-specie distribution to existing shareholders or through a trade sale or buy-out.
Chair of Coca-Cola Amatil Ilana Atlas owns 43 per cent of Oakridge, as does her husband Tony D’Aloisio. D’Aloisio was a former commissioner for the Australian Securities and Investments Commission, CEO and MD of the Australian Securities Commission and chief partner at Mallesons Stephen Jaques. He is currently chair of ASZ-listed financial services company Perpetual.
D’Aloisio bought Oakridge in 2007 from Evans & Tate winery.
