Written by Sarah Young
LONDON (Reuters) – Chapel Down, Britain's largest wine producer, said on Tuesday it was considering putting itself up for sale as part of a review of options to finance its future growth as it plans to plant new vineyards and build a new winery.
“As part of the review, the board will consider all alternatives, including investment from existing shareholders, investment from new shareholders, sale of the company, and other relevant transactions,” the company said.
Its shares closed on the small British AIM market on Monday at 65.5 pence, giving its market value 112 million pounds ($142 million).
Founded in 2002 and based in Kent, south-east England, Chapel Down has grown to become Britain's best-known and largest producer, with last year's crop expected to produce around 3.4 million bottles of sparkling and non-alcoholic wine.
While England's wine industry is still small in scale, temperatures rising due to climate change in recent decades have provided better growing conditions for grapes, and there is a growing demand for local effervescence in the local market.
The quality of wine produced in England has also attracted worldwide attention.
Taittinger and Pommery, two of France's most famous champagne houses, have bought land and planted vines in England, while the world's largest sparkling wine company, Henkell Freixenet, acquired the English wine estate, Bolney, in 2022.
“There is no certainty that the company will pursue this transaction, nor as to the terms of any final transaction,” Chapel Down said in a statement.
Rothschild & Co. is acting as lead financial advisor in connection with the strategic review, the company said.
After achieving revenues of £18 million ($23 million) for 2023, the company said it was on track to achieve double-digit sales growth in 2024 and added that it had a strong balance sheet with significant margin on its £12 million debt facility and deal. To extend this facility.
($1 = 0.7884 pounds)
(Reporting by Sarah Young; Editing by James Davie and Anil D'Silva)
