Accolade Wines owner CHAMP setting the stage for IPO

By Erin Smith

Published: 12 August, 2016

Accolade Wines' majority owner, private equity firm CHAMP, has formally appointed Reunion Capital Partners as an adviser for the company's initial public offering (IPO), which is expected to be listed in the first half of 2017.

The company has not yet announced whether the expected AUD$1 billion or more valued IPO will be listed on the Australian or London Stock Exchange.

"It's pushing towards six years with our investment and we have put a lot of time and effort into it, and we're pretty proud of what we have done here," said CHAMP chief executive officer John Haddock in an interview with The Australian Financial Review.

Paul Schaasfma, who was appointed as chief executive of Accolade Wines in September 2015, has been actively investing in growing the business to take it forward.

He said in an interview with harpers.co.uk, following the acquisition of Chilean wine brand Anakena: "We want to be the number one New World wine supplier. To be honest I don't think that anyone else has the portfolio of countries that we do, to the scale, size and brand level awareness that we do. We are the one-stop shop for New World wines. With the acquisitions in New Zealand, South Africa, America and now Chile with Anakena we have a real New World portfolio for wine."

The company has been focusing significantly on investing in the Chinese market over the last 18 months as the UK, one of Accolade's primary export markets, has proven to be a challenge. The industry heard earlier this year at the Australia Day Tasting that average price of Australian wines sold in the UK had actually slide down in 2015. That coupled with the current Great British pound fluctuations because of Brexit may mean more challenges ahead.

Accolade Wines owns brands including Hardys, Banrock Station and Echo Falls, which has helped to make it the second-largest Australian wine company.

CHAMP purchased an 80% stake in the company from Constellation Brands for AUS$290m in February 2011. Constellation retained a 20% stake in the business.

Printer friendly version