The Courier & Advertiser (Fife Edition)
Top wine merchant is sold
GLASGOW-BASED wine and spirit merchant Inverarity Morton yesterday snapped up Milnathort-based rival Forth Wines in a seven-figure deal — creating an enlarged group with annual revenues topping £75 million.
The parties refused to elaborate on the value of the transaction but said the coming together of two of Scotland’s biggest drink dealers looked set to generate new jobs in Kinross-shire and would boost opportunities for the future.
IM managing director Stephen Russell revealed the acquisition was his fourth attempt to buy Forth in 20 years.
The most recent unsuccessful bid came just over a year ago, following the 2011 takeover of Biggar-based wine merchant Inverarity Vaults by licensed trade supplier William Morton.
He said the acquisition was made particularly attractive by Forth’s stable of premium labels and exclusive brands, high volumes and existing large warehousing facility.
“Forth Wines is a great company and sells a lot of wine,” Mr Russell said. “Actually, each of us sell about the same amount and that means overnight we have doubled our wine volumes.
“And there is no doubt in today’s world that becoming stronger together is a comforting factor but both have a similar ethos and focus on training and getting a great product to our customers.
“With the two companies together, we will have a really strong wine offering.”
He said the agreement would help strengthen the company’s in its heartland Scottish market, where it already supplies more than 2,000 customers in the licensed trade sector, while helping a “more aggressive” approach to the north of England.
“About 22% of Forth’s turnover is in England and collectively, the two companies will have about £7 million of business in England,” Mr Russell added.
“That’s something that we hope to get into but in the short-term, the focus is on the coming few months, which are the busiest period of the year for the licensed trade.”
The companies will continue to be run separately until after the busy Christmas period, with integration taking place after.
Mr Russell said there were likely to be some “synergies” but net employment in Milnathort was “likely to rise” over the coming months through a need to recruit logistics staff to fulfil and distribute an increased number of orders.
Forth directors Ian Cumming and Alan Cramond will join IM, with commercial and finance briefs respectively, while the deal also sees former Forth Wines employee of 20 years Donald Campbell — now IM’s sales director — return to his former stomping ground.
“This is great news for Forth Wines as it provides a platform within a Scottish owned independent business to build on the successful growth we’ve achieved over the past three years since acquiring the company,” Mr Cumming said.
Forth Wines was bought from Matthew Clark in 2010 by experienced industry quartet of George-Thomson, Ian Cumming, Ewen Cameron andAlan Cramond, backed by private investors.
The merchant, which employs 51 staff, increased turnover to £24 million in 2012 after snapping up 116-year-old Fife wholesaler JA Glass early in the year.
Its sale comes just a few days after Perth and Kinross Council approved a planning application seeking permission for the Milnathort site to be turned into a housing development, designed to fund Forth Wines’ previously-proposed relocation to Kinross.
Owned by the Bulloch family, Wm Morton began trading in 1945 and now boasts annual revenues in excess of £50 million and a workforce of 162 people.