On 5 April it was announced that The Carlyle Group had agreed a 100% takeover of Accolade Wines for A$1bn from Constellation Brands and CHAMP III FUNDS.
Angus Grierson, managing director, LGB Corporate Finance, said: “Carlyle’s purchase of Accolade will help the firm to cash in on demand from China’s burgeoning middle class for western consumer products.
“The deal will help cement Accolade’s well-established brands in the Asian region, enabling the business to further capitalise on the increasing Chinese middle class demand for wine.”
According to Grierson, the value of wine exports to mainland China grew by 63% in 2017 and he believes that if US wines are subjected to higher tariffs when imported into China, then it would directly benefit Australian companies.
Grierson added: “This transaction represents an attractive exit for CHAMP, taking Accolade from break-even in 2011 to EBIT of $A100m this financial year. The deal follows CHAMP’s divestment of Matthew Clark in 2015 to the recently embattled Conviviality plc, which generated an estimated 6.0x return.
“Carlyle has a longstanding presence in Asia with on the ground offices in China and will be well positioned to continue Accolade’s success in the region.”
