3 Valley wineries snapped up in blockbuster deal
Gray Monk Estate Winery in Lake Country among properties purchased for total price of $95 million
Grimsby, Ont.-based Andrew Peller is expanding its wine empire with the acquisition of three well-known and respected Okanagan wineries for a combined price of $95 million.
On Monday, Peller announced it was buying Oliver’s Black Hills, Lake Country’s Gray Monk and Tinhorn Creek of Oliver.
“We have long admired these leading estate VQA wineries, and now it is a privilege to bring their ultra-premium wines and talented people into our family,” said Peller CEO John Peller, the thirdgeneration head of the company.
“With our investment and resources, these wines have the potential to grow, develop and compete in the growing luxury wine market around the world.”
Peller plans to keep the Black Hills, Gray Monk and Tinhorn Creek names, properties and staff.
“Peller was very adamant the brands stay intact,” said Black Hills president Glenn Fawcett.
“They want to have numerous premium Okanagan wineries running as autonomous stand-alones. We’ll continue to make our wines our way, but being part of a bigger company means there will be synergies for distribution and marketing and buying power for the corks, bottles and equipment we need.”
Fawcett confirmed Peller is paying $31 million for Black Hills.
That leaves $54 million for the purchases of Gray Monk and Tinhorn.
However, Peller isn’t revealing how much it is paying for each.
The $95-million transaction is expected to close by the end of October, with Peller paying $78 million cash from its credit lines and $17 million Class A common company shares, which trade on the Toronto Stock Exchange.
Peller already owns five Okanagan brands — Peller Estates, Sandhill, Conviction (formerly Calona), Red Rooster and Wayne Gretzky Okanagan.
In Ontario, Peller is also a powerhouse with the Peller Estates, Trius, Thirty Bench and Wayne Gretzky Niagara brands.
While based in Ontario, Peller has its roots in British Columbia and the Okanagan.
Fifty-six years ago, Andrew Peller, who went by Andre, started Andres Wines in Port Moody.
He also had vineyards in the Okanagan.
The company expanded to have operations in Alberta, Nova Scotia, Manitoba and Quebec.
In 2001, Andres moved its headquarters to the Niagara region of Ontario, where it had opened a new winery.
In 2006, the corporate name was changed from Andres to Andrew Peller.
“We’ve known the Peller family for many years and share and appreciate the same values and approach to quality winemaking,” said Gray Monk Estate Winery coowner George Heiss.
“We are delighted to partner with them to continue the legacy of Gray Monk in the Okanagan.”
The Gray Monk purchase includes its 20 hectares of vineyards.
Black Hills also comes with 20 hectares of grape plantings.
And Tinhorn Creek has more than 60 hectares of vineyard.
“It has been the honour of my life to have helped build Tinhorn Creek, to make great wines with an attention to sustainability and, most importantly, to run our business with empathy toward our employees, our customers and our community,” said Tinhorn CEO Sandra Oldfield.
“Andrew Peller will continue the long-term development and growth in the Okanagan that we started.”
Peller is a diversified beverage company.
Besides its wineries across Canada that make high-end VQA wines from 100 per cent regional grapes, it makes several value brands of blended Canadian and imported wines such as Peller Estates Proprietors Reserve, Peller Estates French Cross, Black Cellar, Copper Moon, Sommet, XOXO, Hochtaler, Domaine D’Or, Schloss Laderheim and Royal.
It also makes liqueurs and cocktails under the Panama Jack banner, cider called No Boats on Sunday and Wayne Gretzky No. 99 Red Cask whisky.
Peller subsidiary Global Vintners distributes juice and supplies for do-it-yourself winemakers through 170 Wineexpert retailers and 600 independent retailers around the globe.
Andrew Peller Import Agency brings 61 wine brands from around the world to Canada for sale, including Codorniu from Spain, Caymus of California, Bouchard Pere & Fils from France and Frescobaldi of Italy.