Accolade Wines ‘sounds out interest’ in House of Arras sale
Australian wine producer Accolade Wines has announced Tasmania’s House of Arras is up for sale, with the company ‘sounding out potential interest’ in the brand, run by winemaker Ed Carr, including its Bay of Fires winery and vineyards in Tasmania.
Speaking to db, the firm said it said that while the firm was ‘incredibly proud of the international success of the House of Arras’, the company ‘believes it is the right time to consider a divestment of Arras to allow us to focus on other parts of the business with a closer strategic alignment to the rest of our portfolio’.
The firm highlighted ‘opportunities for growth in markets including the US and Asia’ and pointed to the recent launch of its partnership between J-Shed wines and NBA All Star James Harden.
Accolade Wines told db: “As part of Accolade’s global growth strategy, the company constantly reviews its asset mix to ensure its capital is focused on brands and markets with the greatest potential.”
“Accolade’s growth strategy and our focus on key markets and brands is building momentum and this is through the exceptional hard work of our people and staying focussed on our strategy during a challenging time.
“The strategic divestment of some of assets, particularly vineyards and production facilities either outright or through sale-and-leaseback arrangements, is in line with this capital-light model and allows the Company to redeploy capital to invest in its brands and growing sales.”
The company added that it had ‘no intention’ to sell off the Bay of Fires or Eddystone Point brands or its cellar door tasting facility.
Accolade is the second largest wine producer in Australia, after Treasury Wine Estates. Since 2018, it has been owned by US private equity company, The Carlyle Group, where it was sold for AUS$1billion – around £548 million – which was a trebling in value from its previous purchase price by former owners Champ in 2011. Last year, it sold its 55-hectare Beenack Vineyard in Yarra Valley to TWE for AUD$7 million.