ALLIED GOES ARGENTINIAN

Published: 23 July, 2008

A significant addition

Allied Domecq PLC has bought two Argentinian wine producers, Bodegas y Viedos Graffigna Limitada SA, and Viedos y Bodegas Sainte Sylvie SA from Advent International and Galicia Advent, an Argentinian venture capital fund, for $37.5 million. It will repay $5.4 million of debt for a total consideration of $42.9 million. Bodegas y Viedos Graffigna Limitada SA, and Viedos y Bodegas Sainte Sylvie SA are best known for their Graffigna, Colon and Sainte Sylvie premium wine brands. They are expected to sell some 900,000 cases of wine in Argentina in the year to 30 June 2001, in addition to export volumes - mainly to the UK and US. The companies own approximately 490 hectares, of which 170 are currently planted. They employ 147 people. Allied already owns Bodegas Balbi. A-D chief executive Philip Bowman said: "This acquisition represents a further step in our strategy to build a global wine business, and is a significant addition to our existing operations in Argentina, a market with the fourth highest per capita wine consumption and significant growth potential."

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