McWilliam’s Wines Group creditors have approved a purchase offer from private equity firm Prcstnt Asset Management.
The deal includes Prcsnt paying $30million for the company and more than $16million for its stock, depending on a stocktake and valuation.
KPMG’s Gayle Dickerson, Tim Mableson and Ryan Eagle confirmed that McWilliam’s Wines Group (McWilliam’s) creditors have voted in favour of the Deed of Company Arrangement (DOCA) put forward by Prcstnt.
Dickerson said: “This is an extremely positive outcome for all involved, especially in the current challenging economic environment. Not only will unsecured creditors likely receive full repayment of their debts owed, it preserves ongoing employment for all McWilliam’s staff and a possible return to existing shareholders.”
KPMG Australia was appointed as Administrator to McWilliam’s Wine Group on January 8, 2020.
The Administrators will continue to trade the business during the DOCA process with an expectation that Prcstnt will assume full control of McWilliam’s by October 2020.
David Pitt, McWilliam’s Wines Group CEO, who will continue to lead the business, added: “Whilst it has been a challenging journey over the past six months from bushfires to voluntary administration and a pandemic, we are now very excited to have our future confirmed.
“The McWilliam’s family for six generations have demonstrated the entrepreneurial spirit required to take on all challenges before them, now myself and the broader team are very much looking forward to working with Prcstnt Asset Management as the new custodians of that legacy to ensure the McWilliam’s brand lives on for future generations within Australian wine heritage.
“What is additionally exciting is Prcstnt’s focus on the environment and sustainability in everything they do. Consumers in general are extremely conscious of their impact on the environment so if we, as a wine producer, can meet this need then we will be well positioned for success into the future.”
Mableson said: “The confirmation of Prcstnt’s offer by the creditors sends a strong signal that the Australian wine industry is open for business. McWilliam’s is a historic wine company in Australia with respected brands and strong market positions. Through injection of further capital from Prcstnt, McWilliam’s will be better placed to scale its business in both domestic and international markets, particularly into Asian markets.”
McWilliam’s Wines Group is an unlisted publicly owned company with a rich heritage of 143 years, across six generations of family ownership. It has an extensive product range marketed under a portfolio of owned brands, including McWilliam’s and Mount Pleasant. McWilliams is also currently the sole Australian distributor for global brands Taittinger and Framingham.