McWilliam's WinesBusiness

McWilliam’s Wines back on market

McWilliam’s Wines is back on the market after global private equity and venture capital firm Prcstnt failed to provide the cash to close the deal.

McWilliams Wines Group, which produces brands including Mount Pleasant and Hanwood Estate, went into voluntary administration in January after being in operation for more than 141 years across six generations of family ownership.

In July, creditors owed $40 million voted overwhelmingly in favour of a buyout by Prcstnt. However, the firm has asked for two extensions to settle the deal following its initial November 27 deadline.

Administrator Gayle Dickerson of KPMG granted the extensions, requiring a non-refundable amount of $500,000 on the second extension. The second deadline passed on Wednesday and KPMG is now on the hunt for another buyer.

“We regret to advise that the DOCA (Deed of Company Arrangement) has not been able to be completed as per the terms of the DOCA,” Dickerson wrote in a letter to creditors and suppliers seen by The Australian.

“The deed administrators are currently assessing the options available including sale of the business while continuing to trade the business.”

Dickerson asked McWilliam’s suppliers to “please continue to provide any outstanding invoices payable by the deed administrators”.

“The deed administrators are currently determining the future of the DOCA and will be calling a meeting of creditors shortly.”

Real estate agents from Colliers International have since been reappointed to sell the business and assets of McWilliam’s Wines Group as a going concern or separately.

Colliers International agribusiness specialist Tim Altschwager said he anticipates wide-ranging interest from major wine industry participants, private equity investors and high net worth individuals.

“In particular, existing wine industry groups will see an outstanding opportunity to add an iconic Australian name to their portfolios,” he said.

“McWilliam’s does not currently have an extensive international distribution network, which makes this a substantial opportunity for a buyer with existing overseas networks to ramp the business up.”

Asahi Beverages sells online platform Boozebud

Success! You're on the list.

Categories: Business