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May 30, 2022 View:

Prcstnt Asset Management buys McWilliam Wine Group for A$50 million

Recently, McWilliam's Wines Group, which has entered the resource management process due to poor operations and has been taken into trust by KPMG, has received a strong buyer. A vote within McWilliam's Group was held last Friday and was finally approved.

Image courtesy of: Wine Business Watch

Prcstnt Asset Management offers A$50 million to acquire McWilliam, who has voted to approve

According to a recent Sydney media report, Prcstnt Asset Management is now sitting on the main seat to acquire the McWilliam Wine Group. McWilliam"s creditors will then vote on the A$50 million deal.

Also according to local media reports: Last Friday, a majority of McWilliam's 300 creditors voted on the agreement, which will allow unsecured creditors to be paid in full for their debts, all employees to continue to be employed, and the company to potentially bleed back.

Another local website reported that the KPMG team also confirmed on the 24th that McWilliam's creditors had adopted a Deed of Company Arrangement (DOCA), which was proposed by Prcstnt Asset Management.

Gayle Dickerson Tim Mableson and Ryan Eagle, partners in KPMG's restructuring services in Australia, were appointed as administrators by McWilliam on January 8, 2020. The Administrators will remain in charge of the business during the DOCA process, with Prcstnt Asset Management expected to gain full control of McWilliam in October 2020. David Pitt, CEO of McWilliam, will continue to lead the business.

New owners say they will expand the market size of McWilliam in the medium and long term

Prcstnt Asset Management's website shows that the company is a global capital and asset management firm focused on the intersection of sustainability, agriculture, resources and renewable energy, and is based in Australia.

Speaking to the media two weeks ago, Executive Chairman Charles Hunting said: "This investment in the McWilliam Wine Group is a cornerstone investment in our Australian wine sector.

The immediate priority is for McWilliam to avoid decline and return to profitability in the short term. In the medium to long term, we hope to inject more capital to make the business more scalable in both domestic and international markets. He said.

KPMG also supported the agreement, and Gayle Dickerson, one of the team, said: "The current stage in this voluntary management process is certainly a milestone reached by McWilliam.

Image courtesy of: Wine Business Watch

The history of the McWilliams family ownership will come to an end

According to a recent performance report by Australian specialist media: McWilliam is ranked as the 7th largest wine company in Australia by revenue. The unlisted joint stock company has 80 shareholders, most of whom are from the McWilliam family, and its total revenue for the 2018-19 financial year was A$97 million.

Publicly available information shows that McWilliam is known for having gone through 6 generations of family ownership. With a long history of nearly 144 years. In 1877, Samuel McWilliam planted the first vines in Cornwall, New South Wales, and since then, the company has operated in the coastal and Hunter Valley regions of New South Wales, and owns Hanwood Winery and Mount Pleasant Winery.

In a 257-page report, KPMG described a number of reasons why the trustees believe the winery has emerged, including losses, failure to secure adequate debt and equity financing, pressure on margins and declining sales.

Some media comment: After the vote passed last Friday, the status quo of McWilliam being owned by the family will end.