Vintage Wine Estates Enhances Direct-to-Consumer Platform with Acquisition of Vinesse, LLC
September 28 2021 - 3:33PM
Vintage Wine Estates, Inc. (NASDAQ: VWE) (TSX: VWE.U) (TSX:
VWE.WT.U) (“VWE” or the “Company”), one of the fastest growing wine
producers in the U.S. with direct-to-customer platform, today
announced it has acquired substantially all of the assets of
Vinesse, LLC, a direct to consumer platform company specializing in
wine clubs with over 60,000 members. Founded in 1993, Vinesse has
developed a long-time following by offering interesting boutique
wines to a broader audience and making wine accessible and easy to
love.
Pat Roney, CEO of VWE, commented, “We are rapidly expanding our
DTC capabilities and Vinesse is an excellent addition to the
platform. Vinesse currently outsources virtually all of their
operations. We believe we can create significant cost synergies by
bringing wine making and distribution in house and marketing VWE’s
brand portfolio through their channels. We also see significant
potential opportunities for revenue expansion as we blend the
talent of Vinesse’s traditional marketing skills with our digital
capabilities, particularly through cross-selling into Vinesse’s
channel and upselling our luxury brands to their club members.”
He continued, “We are acquiring the business for approximately
12x Vinesse’s current EBITDA and expect to lower that multiple to
less than 5x over the first 12 months driven principally by cost
synergies. As we continue to execute on our strategy, we expect
that this will be the first of several acquisitions we intend to
make during FY2022 that complements our planned organic
growth.”
With approximately $20 million in revenue, Vinesse is 100% owned
by Larry Dutra who is expected to remain with the operations to
help continue to grow the business along with other Vinesse
leadership. VWE is acquiring Vinesse for $14 million in cash with a
$2.5 million earnout over a three-year period subject to meeting
certain revenue and profitability conditions.
About Vintage Wine Estates, Inc.Vintage Wine
Estates is a family of wineries and wines whose mission is to
produce the finest quality wines and provide incredible customer
experiences with wineries throughout Napa, Sonoma, California’s
Central Coast, Oregon and Washington State. Since its founding 20
years ago, the Company has grown to be the 15th largest wine
producer in the U.S. selling more than two million nine-liter
equivalent cases annually. To consistently drive growth, the
Company curates, creates, stewards and markets its many brands and
services to customers and end consumers via a balanced omni-channel
strategy encompassing direct-to-consumer, wholesale and exclusive
brand arrangements with national retailers. While VWE is diverse
across price points and varietals with over 50 brands ranging from
$10 to $150 at retail, its primary focus is on the fastest growing
premium segment of the wine industry with the majority of brands
selling in the $12 to $20 price range. The Company regularly posts
updates and additional information at
https://www.vintagewineestates.com/.
Forward-Looking StatementsSome of the
statements contained in this press release are forward-looking
statements within the meaning of U.S. securities law and
forward-looking information within the meaning of applicable
Canadian securities law (collectively, “forward-looking
statements”). Forward-looking statements are all statements other
than those of historical fact, and generally may be identified by
the use of words such as “anticipate,” “believe,” “continue,”
“estimate,” “expect,” “future,” “intend,” “may,” “model,”
“outlook,” “plan,” “pro forma,” “project,” “seek,” “should,”
“will,” “would” or other similar expressions that indicate future
events or trends. These forward-looking statements include, but are
not limited to, statements regarding the expected benefits and
opportunities of the Vinesse acquisition. These statements are
based on various assumptions, whether or not identified in this
press release, and on the current expectations of VWE’s management
and are not guarantees of actual performance. These forward-looking
statements are subject to a number of risks and uncertainties, many
of which are beyond the control of VWE. Factors that could cause
actual results to differ materially from the results expressed or
implied by such forward-looking statements include, among others:
our ability to realize the expected benefits of the Vinesse
acquisition, including anticipated cost synergies and revenue
expansion; and those factors discussed in documents of VWE filed
with the U.S. Securities and Exchange Commission (“SEC”) or
Canadian securities regulatory authorities. There may be additional
risks that VWE does not presently know or that VWE currently
believes are immaterial that could also cause actual results to
differ from those expressed in or implied by these forward-looking
statements. In addition, forward-looking statements reflect VWE’s
expectations, plans or forecasts of future events and views as of
the date of this press release. VWE undertakes no obligation to
update or revise any forward-looking statements contained herein,
except as may be required by law. Accordingly, undue reliance
should not be placed upon these forward-looking statements.
Contacts: |
|
Investorsir@vintagewineestates.com |
MediaMary Ann
VangrinMVangrin@vintagewineestates.com |
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