Following the appointment of Tim Mableson and Ryan Eagle of KPMG as Voluntary Administrators and Andrew Heard and Anthony Phillips of Heard Phillips Lieberenz as Receivers and Managers to certain entities within the Salena Estate Wine group, Elders Ltd (ASX: ELD) and Woodbridge Iles have been appointed to undertake a sale of the business and assets.
Salena Estate is a vertically integrated enterprise with significant grape production capacity, a modern winery and a bottling facility. It is one of Australia’s largest organic wine producers, holding a stable of award-winning brands that are marketed globally. Salena Estate derives ancillary income from distillery and hospitality operations.
- Located in the Riverland Region of South Australia, the most significant wine region in Australia by volume of wine produced
- Approximately 185 hectares of planted vineyards, including certified organic grape production
- A significant modern winery with 15,000 tonnes of processing capacity and 17 million litres of storage capacity
- A fully equipped laboratory and bottling and packing line (capacity for 4,500 bottles per hour)
- A commercial distillery that has produced gin and vodka products
- Modern restaurant and cellar door facilities
Elders Executive General Manager Network, Tom Russo, said “The Salena Estate Wine business is a vertically integrated enterprise of scale that has been established to a corporate standard. We will be conducting a flexible expression of interest process that will cater for offers to acquire all or part of the portfolio. It will be of interest to a range both local, institutional and offshore buyers”.
“The sale process is being undertaken during a pivotal time for the industry given the recent announcement that China has reversed its punitive tariffs on Australian wine. To put things into perspective, the Australian wine industry lost a $1.4 billion export market overnight and now has the opportunity to reinstate its position as a preferred supplier to consumers within that vast market. Whilst it is well understood that the industry continues to undertake a structural adjustment in response to supply issues, astute investors will be closely considering whether now is the optimum time in the cycle to deploy capital and enjoy the inevitable upside”.
Russell Iles, Managing Director of specialist wine industry transaction firm, Woodbridge Iles agrees. “This sale represents an opportunity to acquire significant production capacity and market access which would be extremely expensive and time consuming to replicate. Buyers will see value in being able to acquire a quality asset and supported by a renowned stable of brands that provide immediate market presence”.
The expression of interest process will close on 24 May 2024.