Accolade Wines’ $1billion-plus listing – initially mooted for early 2017 – has been put on hold for at least 12 months.
The Australian Financial Review reports the slated float of the CHAMP Private Equity-owned company may be rebooted next year: “Sources suggested 2018 was being pencilled in for the company’s run at the local bourse as the company looked to bed down an acquisition and re-negotiate prices with retailers in the United Kingdom. Sharp movements in the pound have worked against the Accolade float which was targeting the ASX to run off the coat tails of a stellar rally in Treasury Wine Estates.”
CHAMP, which has an 80% stake in Accolade, had planned to exit the business as a major shareholder.
Accolade is Australia’s second-largest wine company and owns brands including Hardys, Leasingham, Grant Burge and Banrock Station.
CHAMP chief executive John Haddock previously told AFR: “It’s pushing towards six years with our investment and we have put a lot of time and effort into it, and we’re pretty proud of what we have done here. When we bought it, it was two separate businesses and underperforming across most metrics. Wine is a slower cycle business, we knew it would take time.”
Haddock said the company was keen to emulate Treasury Wine Estates’ success in China.
“We were not as focused on China until 12 to 18 months ago when we started to significantly invest into that area. The benefits won’t be reaped today or tomorrow, it will take years,” he admitted.
Meawhile, the company recently beefed up its offering with the purchase of Lion’s Australian wine portfolio, including “niche premium” brands such as Croser, Petaluma, Knappstein, St Hallett, Stonier, Wither HiIls, Te Hana and Tatachilla.
It also announced in October that it would spend between $35 million and $40 million setting up a new glass bottling plant and warehouse facilities at its existing winery in Berri.
Earlier this month, The Australian speculated that Accolade “may bulk up with an acquisition of its rival Australian Vintage before any sale plans, although there are currently no moves afoot to do so.”
