Tue, 26 Sep 2023 | COMMERCIAL PROPERTY
A takeover process has been initiated to sell Hambledon Vineyard, Britain’s oldest vineyard, to a consortium led by Berry Bros & Rudd, the country’s oldest wine merchant, and The Symington Group of Portugal for £22.3 million. The proposed fee represents slightly over a 13x multiple of Hambledon’s £1.74 million turnover for the year ending November 30 2021, up from £1.5 million in 2020.
While the vineyard, which was established in 1952 and is publicly listed, saw turnover growth during 2021, its post-tax losses widened significantly from £623,609 in 2020 to £1.03 million, following a year in which it continued to be impacted by COVID-19, Brexit and frost early in the year, which resulted in the second lowest yield per acre in more than 20 years.
According to the consortium, which is named CVI UK, the proposed acquisition is seen as “a strategic opportunity to diversify” after the vineyard had struggled during a period of “sustained financial pressure”. Hambledon’s directors have reportedly been seeking ways to bring new equity into the business in order to develop new vineyards and construct new visitor centre facilities.
While the business has struggled over recent years, the takeover bid comes amid a sustained increase in the popularity of British wines over the past decade, with production having been boosted by the UK’s warming climate. The consortium said that they would seek to tap into the vineyard’s growth potential and take its brand “to the next level”, adding that they viewed the acquisition as “an important mitigation against the risk of climate change”.
Lizzy Rudd, chair of Berry Bros. & Rudd, and Rupert Symington, chief of Symington Family Estates, said: “We have been working with the Hambledon directors, lawyers, and advisers to prepare this offer to shareholders, which is being recommended by the independent Hambledon board. We believe the offer represents a positive opportunity for shareholders to receive value for their investment against the backdrop of the highly uncertain future the business otherwise faces.”
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