Southern Premium Vineyards (SPV) will acquire 7,215 hectares of vineyards and 35 properties from Casella Family Wines.
SPV - owned by Canadian pension fund manager Public Sector Pension Investment Board - currently owns 460 hectares of vineyards in the Coonawarra and Barossa Valley. The acquisition will expand its vineyard portfolio in South Australia, including Clare Valley, Langhorne and Currency Creeks, Limestone Coast, and the Riverina region.
The partnership includes a long-term grape supply agreement with Casella. SPV will take on the management of the vineyards and associated employees and the deal includes the land, properties, associated water entitlements, plant and equipment.
John Casella, Managing Director of Casella Family Brands, said: “We are confident that SPV will continue to deliver the quality and consistency of the grapes we require, safeguard and preserve the vineyards and ensure the wellbeing of employees.”
Canadian based Marc Drouin, Senior Managing Director of PSP Investments, said: “Casella is a best-in-class group with an impressive portfolio of vineyards in some of the country’s most highly regarded wine regions. This acquisition is a cornerstone investment for both SPV and PSP Investments’ global wine portfolio.”
Casella made the decision to offload its vineyards and invest its capital into brand building and to grow the business domestically and internationally. Proceeds from the sale will be reinvested into the Casella business to achieve this. Casella is already Australia’s largest family-owned winery and Australia’s largest exporter by volume,
Yellowtail accounts for approximately 17% of all Australian exported wine and has been awarded the World’s Most Powerful Wine Brand for five years in a row.
SPV Director Nick Gill said: “SPV’s strategy is to offer wine companies a multi-regional grape supply solution for their wine grape sourcing as an alternative to owning or leasing vineyards – and a partnership with Casella is a perfect fit with this strategy.”
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