August 5, 2021

By Lynda Kiernan-Stone, Global AgInvesting Media

Brendon Gibson and Neale Jackson of Calibre Partners – the Receivers of FFWL, the parent company of New Zealand winery Villa Maria Estate – have signed a conditional agreement to sell 100 percent of Villa Maria Estates to Indevin, New Zealand’s largest contract winemaker.

Although financial details of the deal were not disclosed, Villa Maria is the largest family-owned winery in New Zealand, with 300 employees, processing 30,000 tons of grapes each year, and selling 2.5 million cases of wine to global markets last year.

Villa Maria was placed on the market after its parent company FFWL accrued debts exceeding NZ$200 million (US$140 million) to creditors, including ANZ and Rabobank.

FFWL, which is owned by Sir George and Kaaren Fistonich, was placed in receivership in May of this year, amid a nine month-long attempt to sell Villa Maria. It has been reported that there were multiple interested parties including high-volume winery Delegat, with its own large-scale operation located in Marlborough, a new winery in Hawke’s Bay, and ownership of the Oyster Bay label, and Scales Corporation – New Zealand’s largest apple grower and packer. 

Privately-owned Indevin is a large name in New Zealand’s wine industry accounting for the supply of grapes from more than 3,000 hectares of vineyards and producing wines that are sold to consumers all over the world.

“Our business model is all about producing quality wines, creating authentic brands while retaining and building value for New Zealand wine in international markets,” said Greg Tomlinson, chairman, Indevin.

The integration of Villa Maria with Indevin appears to be highly compatible. Both parties have operations in Marlborough – both have wine making facilities in Hawke’s Bay, with Villa Maria having recently built a winery with a capacity of 10,000 tons at the location – and both own vineyards in New Zealand’s Gisborne region.

Once this deal is finalized, it will see Indevin acquire Villa Maria’s Marlborough, Hawkes Bay, and Auckland headquarters, wineries, and bottling plant, its vineyards, supplier agreements, and its brands Esk Valley, Vidal, Leftfield, and its flagship brand Villa Maria.

“Indevin is a successful operator,” said Malcolm McDougall, chairman, Villa Maria. “It brings a strong supply chain and has established key export markets with contracted long-term partnerships. Meanwhile, Villa Maria brings a legacy and strong brands that command a premium. Together, that’s a powerful combination.”

If all goes to plan, Brendan Gibson says that the sale should be finalized on August 31, with an ancillary sale off 34 hectares of industrial land surrounding Villa Maria’s Auckland winery scheduled to be sold to Good Property Trust later in the year, noting, “We see this is a good outcome that provides certainty for the business, staff, customers, suppliers and the communities in which Villa Maria operates.”

– Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan-stone@globalaginvesting.com.