THE wine grape glut isn't enough to sour a $27 million deal that saw one of the world's largest wine company buy a Loxton Winery.
South Australian law firm Kelly & Co. has advised Australian Vintage Limited on the $27 million sale of its 90,000 tonne Loxton winery to TWG Australia II, the Australian subsidiary of Californian-based Wine Group.
As part of the transaction, completed last Friday, TWG Australia has employed all existing permanent staff working at the winery.
Kelly & Co corporate partner Jamie Restas led the team that advised on all aspects of the deal. The team included property partner, Lachlan Andrews.
The settlement involved the entry into a number of transitional arrangements, including a number of licence agreements with TWG Australia and a three year storage agreement.
Australian Vintage Limited will retain the Austflavour business and associated staff, as well as the existing grower contracts for the supply of grapes in the region.
The net proceeds have been used to reduce debt.
“Australian Vintage Limited is a long standing client of Kelly & Co. Lawyers and we were pleased to be able to assist in what was an important transaction for the company and the Riverland wine region,” Restas said.
“The sale was an important step in executing Australian Vintage Limited’s strategy to be the lowest cost wine producer in Australia.”
Restas said the transaction was one of many that the Mergers and Acquisitions team at Kelly & Co. was working on during a time when the local market was looking strong.