Andrew Peller Limited said Monday it signed definitive agreements to acquire Black Hills Estate Winery and Gray Monk Estate Winery and has entered into a letter of intent to acquire of Tinhorn Creek Vineyards, for a combined purchase price of $95 million.
A leading producer and marketer of Canadian wines and spirits, Andrew Peller Ltd., which reported sales of $88.9 million for the three-month period ending June 30, 2017, said the three estate wineries in British Columbia’s Okanagan Valley generated total annual revenues of approximately $25 million.
Andrew Peller, which also markets Wayne Gretzky Estate Winery among other brands, said the deals would be funded by a combination of $78 million in cash from the company’s credit lines and $17 million worth of Class A common shares. The company expects to close the transactions on or before the end of October 2017 and expects the purchases to be accretive immediately.
This is not Andrew Peller’s first venture into British Columbia—they own Red Rooster and Sandhill along with other estates in the Okanagan—but a spokeswoman described the trio of wineries just bought as “premium, really super-premium wineries that regularly sell out of their wines.”
The current winemaker at each facility is expected to remain.
Hoopes Vineyard Acquires Hopper Creek
Hoopes Vineyard in Oakville, California said on Monday it had acquired Hopper Creek Vineyard and Winery in nearby Yountville. Terms of the deal were not disclosed, but Wine Country Consultants represented both the buyer and the seller.
Hopper Creek’s eight-acre property, planted with Cabernet Sauvignon and Merlot, will serve as a new location for the Hoopes Vineyard winery.
“The wine business has become increasingly difficult for small producers. The cost of land, limitations on hospitality and tastings, and excessive cost and process for permitting have made it very difficult to realize high-margin sales,” said Lindsay Hoopes, owner of Hoopes Vineyards.
Hoopes said she expected the purchase would “be an ideal solution for us to build out the next generation of the family business.”