Three of the Okanagan Valley鈥檚 best-known wineries are changing hands.
Andrew Peller Limited has signed definitive agreements to purchase Black Hills Estate Winery in Oliver and Grey Monk Estate Winery in Lake Country. The company has also signed a letter of intent to acquire Tinhorn Creek Vineyards. All the transactions are expected to be complete by the end of October.
The company is purchasing the three wineries at a combined cost of $95 million and says the acquisitions pushes Andrew Peller into the largest producer of quality wines in B.C.
鈥淢y grandfather started our business in the Okanagan nearly 60 years ago, and we have always been inspired by the Valley鈥檚 promise to make wines that rival the very best in the world. 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,鈥� said John Peller, Andrew Peller Limited鈥檚 chief executive officer. 鈥淲ith our investment and resources, these wines have the potential to grow, develop and compete in the growing luxury wine market around the world.鈥�
鈥淏lack Hills has been proud of how we have evolved our quality over the years. This new partnership allows us access to resources and tools to evolve even further,鈥� said Glenn Fawcett, president of Black Hills Estate Winery.
Gray Monk Estate Winery is a family-owned and operated winery located in Lake Country, where the Heiss family recently celebrated 45 years of producing their award-winning Pinot Gris, along with a range of premium red and white wines.
鈥淲e鈥檝e known the Peller family for many years and share and appreciate the same values and approach to quality winemaking. We are delighted to partner with them to continue the legacy of Gray Monk Estate Winery,鈥� said George Heiss, co-owner of Gray Monk.
Tinhorn Creek Vineyards, located on the Golden Mile Bench, the Okanagan鈥檚 only sub appellation, sits among 150 acres of vineyards and the winery鈥檚 prestigious and award-winning Miradoro Restaurant. Family-owned and operated since 1993, Tinhorn Creek produces both red and white wines.
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鈥淚t 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,鈥� said Sandra Oldfield, CEO, Tinhorn Creek Vineyards. 鈥淎ndrew Peller will continue the long term development and growth in the Okanagan that we started.鈥�
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Randy Powell, president of Andrew Peller Ltd. sees a significant opportunity for growth in the Okanagan wine region.
鈥淐anadian consumers are becoming more and more interested in super and ultra-premium wines, and these are some of the greatest brands in the country,鈥� Powell said. 鈥淭hey complement our Western Canada VQA portfolio well and will significantly strengthen our presence in the region.鈥�
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 cash from the company鈥檚 credit lines and $17 million worth of Class A common shares. All three produce portfolios of consistently award-winning wines.
More information about Andrew Ellen Ltd. can be found at www.andrewpeller.com.
