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A private-equity-style investment fund is set to join the top ranks of New Zealand wine producers, buying Marlborough vineyards worth almost $10 million.
The New Zealand Wine Fund - whose wealthy shareholders include National Business Review publisher Barry Colman and former TVNZ CEO Brent Harman - is to buy the assets of Clifford Bay Estate, which is close to New Zealand Wine operations in the Awatere Valley.
No price was given for the purchase - which is subject to due diligence - but it is understood to be close to $10 million.
Clifford Bay, which already has links to the fund's operations, produces around 40,000 cases a year. When this is added to the fund's existing operations, it will mean NZ Wine is producing more than 260,000 cases a year, giving it elite category-three producer status (222,000 cases or more). Only six other winemakers have this ranking.
"Assuming normal vintage in 2007, the company will produce in excess of 260,000 cases of our premium and ultra-premium wines marketed under the Vavasour, Goldwater, Dashwood and Clifford Bay brands," said fund executive chairman David Belcher.
The Clifford Bay wines are made by Vavasour and distributed by the same operation that handles the other fund wines. The deal follows the fund's purchase this year of Goldwater for more than $10 million.
