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.”
Read about how ESG has become one of the core considerations in M&A deals
Prime location business located in historic harbour area in Devon. Jaw dropping premises with immense charm and personality.
FREEHOLD
An extremely rare opportunity to acquire a waterside freehouse pub in one of the most sought after coastal village locations in the region. This historic and characterful Grade II Listed property is understood to have originally been constructed arou...
Located in a delightful semi-rural country setting in the very heart of this traditional Devon village of Hemerdon, lying on the southern boundaries of Dartmoor National Park and on the outskirts of the major South Devon city of Plymouth. From its sl...
FREEHOLD
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.