Riverland winery, Salena Estate Wines is on the market, under the instructions of administrators, receivers and managers.
Salena Estate is a vertically integrated enterprise with significant grape production capacity, a modern winery and a bottling facility. It is one of Australia's largest organic wine producers, holding a stable of award-winning brands that are marketed globally. Salena Estate derives ancillary income from distillery and hospitality operations.
Salena Estate offers approximately 185 hectares of planted vineyards, including certified organic grape production.
It is a significant modern winery with 15,000 tonnes of processing capacity and 17 million litres of storage capacity.
It boasts a fully equipped laboratory and bottling and packing line (capacity for 4500 bottles per hour), a commercial distillery that has produced gin and vodka products and a modern restaurant and cellar door facilities.
"The Salena Estate Wine business is a vertically integrated enterprise of scale that has been established to a corporate standard," Elders Executive General Manager Network Tom Russo said.
"We will be conducting a flexible expression of interest process that will cater for offers to acquire all or part of the portfolio. It will be of interest to a range both local, institutional and offshore buyers.
"The sale process is being undertaken during a pivotal time for the industry given the recent announcement that China has reversed its punitive tariffs on Australian wine."
"To put things into perspective, the Australian wine industry lost a $1.4 billion export market overnight and now has the opportunity to reinstate its position as a preferred supply to consumers within that vast market.
"Whilst it is well understood that the industry continues to undertake a structural adjustment in response to supply issues, astute investors will be closely considering whether now is the optimum time in the cycle to deploy capital and enjoy the inevitable upside."
Managing director of specialist wine industry transaction firm Woodbridge Iles, Russell Iles, agrees.
"This sale represents an opportunity to acquire significant production capacity and market access which would be extremely expensive and time consuming to replicate.
"Buyers will see value in being able to acquire a quality asset and supported by a renowned stable of brands that provide immediate market presence."
The expression of interest process will close on May 24.
For more information contact Adam Chilcott on 0447 710 484.
