Three Okanagan wineries are changing ownership.
Black Hills Estate Winery, Gray Monk Estate Winery and Tinhorn Creek Vineyards have all been purchased by Andrew Peller Limited (APL) for a combined price of $95 million.
The move makes APL the province's largest producer of quality wines.
APL has signed definitive agreements to acquire 100% of Black Hills and Gray Monk, while they’ve entered into a letter of intent to acquire 100% of Tinhorn Creek.
The three estate VQA wineries generated total revenues of approximately $25 million in their latest fiscal years.
The purchase will be funded by a combination of $78 million in case from the company’s credit lines and $17 million worth of Class A common shares.
The sale is expected to be closed by the end of October.
“We have long admired these leading estate VQA wineries and now it is a privilege to bring their ultra-premium wines and talented people into our family,” said John Peller, APL’s CEO. “With our investment and resources, these wines have the potential to grow, develop and compete in the growing luxury wine market around the world.”
Black Hills is located on the Black Sage Bench near Oliver and it’s one of Canada’s most prestigious wine producers.
Recognized for its terroir and 50 acres of vineyards, the winery consistently sells out of its high performing portfolio of VQA wines.
“Black Hills has been proud of how we have evolved our quality over the years,” said president Glenn Fawcett. “This new partnership allows us access to resources and tools to evolve even further.”
Gray Monk was founded in 1972 and is a family-owned and operated winery in Lake Country.
With a beautiful estate winery and 50 acres of grape plantings, Gray Monk is a favourite for wine lovers visiting the Okanagan.
“We’ve known the Peller family for many years and share and appreciate the same values and approach to quality winemaking,” said co-owner George Heiss. “We are delighted to partner with them to continue the legacy of Gray Monk Estate Winery in the Okanagan.”
Finally, Tinhorn Creek is located on the Golden Mile Bench near Oliver, sitting among 150 acres of vineyards.
It’s been family-owned and operated since 1993 and features the award-winning Miradoro Restaurant.
“It has been the honour of my life to have helped build Tinhorn Creek, to make great wines with an attention to sustainability and most importantly, to run our business with empathy toward our employees, our customers and our community,” said CEO Sandra Oldfield. “Andrew Peller will continue the long term development and growth in the Okanagan that we started.”
Completion of the each transaction is subject to a number of conditions customary for transactions of this nature and, in the case of Tinhorn Creek Vineyards, entering into a definitive agreement.
Each transaction is independent of, and not conditional upon, the other transactions.