Accolade Wines is reportedly seeking a deal with Paris-based Pernod Ricard while still in discussions over a potential merger with Australian Vintage.
Bain Capital-owned Accolade was deep in talks with Pernod’s board and major shareholder, the Ricard family, sources told the Australian Financial Review.
If discussions remain on track, a deal is likely to be reached by the end of this month, the sources added. The estimated value of the transaction is about $500 million.
Accolade Wines owns brands including Hardy’s, St Hallett, Petaluma, Banrock Station, Grant Burge and Mud House, while Pernod Ricard’s portfolio includes Jacob’s Creek, St Hugo, George Wyndham and New Zealand’s Brancott Estate, among others.
The news came as Bain Capital was in talks with ASX-listed Australian Vintage about a backdoor listing of its Accolade into the business.
However, there have been growing concerns that Bain Capital may walk away from the deal following the departure of Australian Vintage CEO Craig Garvin, according to The Australian. The company previously attributed the termination to Garvin’s lack of judgement and conduct that were inconsistent with its values.
Accolade Wines is currently controlled by Bain Capital, Intermediate Capital Group, Capital Four, Sona Asset Management, and Terry Asset Management. The business’s previous owner was The Carlyle Group, which bought it in 2018 for $1 billion.
Prior to the change in ownership, Accolade had been sitting on a $583 million Term Loan B due next year and a $150 million revolving credit facility that will mature in June this year.
