In a significant development, Accolade Wines has unveiled a crucial agreement with its lenders, Australian Wine Holdco Limited (AWL), outlining a comprehensive recapitalization plan. The announcement, made today, marks a strategic move to stabilize the financial trajectory of the renowned wine producer.
According to the terms of the agreement, there will be a noteworthy shift in control as AWL, a consortium of international institutional investors, assumes equity ownership of Accolade Wines. The capitalization plan, slated for completion by mid-year, is poised to empower Accolade Wines in reducing its total senior interest-bearing debt. This reduction will be accompanied by a subsequent decrease in annual interest expenses. Additionally, the infusion of additional funding from AWL investors is expected to furnish Accolade Wines with enhanced operating flexibility, facilitating strategic investments in the expansion of the business.
Accolade Wines CEO, Robert Foye, expressed optimism about the recapitalization plan, stating, “This agreement is great news for Accolade, our customers, our suppliers, and our people.” Foye acknowledged the challenges faced by Australian winemakers due to macro-economic and industry headwinds. He emphasized that despite having a robust portfolio of brands and leadership positions in key markets, the company’s growth potential had been impeded by an unsustainable balance sheet.
“With this recapitalization and the support of our new shareholders, we will be ideally positioned to take advantage of the significant opportunities to meet consumer demand and grow sales around the world,” Foye concluded.
AWL, comprising funds backed by prominent entities such as Bain Capital Special Situations, Intermediate Capital Group, Capital Four, Sona Asset Management, and Samuel Terry Asset Management, echoed a commitment to Accolade Wines’ longstanding legacy. A spokesperson for AWL stated, “Accolade Wines has a long, proud Australian history as a world-class wine producer, and we hope it will remain so for many decades to come.” The spokesperson emphasized the aim of building a more secure long-term future for the business through the restructuring process. AWL expressed dedication to collaborating with Accolade’s management to focus on operations and stakeholders.
Addressing the significance of Accolade’s South Australian operations, the spokesperson assured a commitment to working closely with business partners, including growers and customers, to ensure the sustainability of the business. Importantly, the agreement outlines that there will be no immediate changes to Accolade Wines’ current operations, employee numbers, or customer and supplier relationships.
Pending customary regulatory approvals, the implementation of the agreement allows a timeline for the satisfaction of conditions and negotiations of procurement arrangements, currently being undertaken by Accolade Wine’s management team. The development signals a pivotal moment for Accolade Wines as it positions itself for a resilient and growth-oriented future.
