NEW ZEALAND. Vincor International, one of North America’s largest producers of wine and related products, has acquired privately-held Kim Crawford Wines of Auckland, New Zealand.
The purchase price is comprised of a payment of NZ$14.8 million for the winery’s shares on a debt-free basis plus a performance-based earn-out payable in 2008, with a minimum value of NZ$3.2 million for the winery’s founders, Kim and Erica Crawford, who will remain with the business.
The purchase price is subject to final adjustment following an audit of the winery’s financial results. Vincor, owner of the highly successful Canadian sweet wine Inniskillin, will satisfy a NZ$2.0 million portion of the purchase price through the issuance of common shares.
“With the acquisition of Kim Crawford Wines, Vincor has successfully expanded operations to another important New World wine region while enhancing its portfolio of international wine brands,” said Vincor president and ceo Donald Triggs. “This latest addition to the Vincor family of estate wineries adds both scale and excellent brands to the strategic presence we established in the Oceania region with our acquisition of Australia’s Goundrey Wines in November, 2002.
“Kim Crawford has twice been recognized as New Zealand’s winemaker of the year and his namesake brand is poised for rapid growth as we build on the winery’s domestic success while continuing to drive sales of this emerging brand across all distribution channels.”
New Zealand winemakers have developed a strong reputation around the world for producing distinctive, high quality wines in the volumes necessary to supply international markets. Kim Crawford Wines is based in Auckland with winery operations in Marlborough on New Zealand’s South Island and a cellar door located in the Hawke’s Bay tourist and wine region of New Zealand’s North Island.
Kim Crawford, one of New Zealand’s most renowned winemakers, founded the business with his wife Erica in 1994 to focus exclusively on the production of super and ultra-premium wines. Sales volume for the winery has grown each year since inception to over 86,000 cases for 2002. As a result, Kim Crawford Wines is now the 10th largest winery in New Zealand overall and the 6th largest in terms of sales to the New Zealand domestic market.
“Given our longstanding efforts to make Kim Crawford Wines a truly global brand, joining Vincor, with its impressive distribution network in both North America and Australia – two major export markets for New Zealand wine – was the next logical step for us,” said Kim Crawford. “We now look forward to realizing the fullest potential of our people and our wines in international markets.”
