Global giant Pernod Ricard ready to uncork ANZ wine brands; taps banks
Pernod Ricard, the world’s second-largest wines and spirits producer, has mandated two banks to conduct a strategic review of its Australia and New Zealand business which could lead to a sale process as early as next month, Street Talk can reveal.
Jacob’s Creek in the Barossa Valley, South Australia.
Street Talk understands the Paris-listed group has tasked its long-time advisers Morgan Stanley and JPMorgan with the review. The company’s Australian portfolio includes the Jacob’s Creek brand, along with St Hugo and George Wyndham. It also owns Brancott Estate and Stoneleigh in New Zealand.
Sources expect flyers to hit inboxes in October.
It’s not Pernod Ricard’s first time trying to offload its Australian portfolio. In 2019, as it faced pressure from activist investor Elliott Management, Pernod Ricard put a portfolio of wine labels including Jacob’s Creek on the auction block via the same two investment banks it has onside now.
At the time, expectations were of a $1 billion price tag, even though the unit made up some five per cent of the company’s total sales. The process drew out several keen suitors; The Carlyle Group’s Accolade Wines hired Credit Suisse and Bank of America; European buyout firm PAI Partners tapped Rothschild; Penfolds; owner Treasury Wine Estates leaned on Goldman Sachs, and KKR and TPG Capital also took a look.
Needless to say, there’s no shortage of suitors who should come back for a second look. However, Pernod Ricard’s advisers could strike Accolade from their list of potentials, given it has been struggling with its debt load and has drafted in Rothschild & Co to explore refinancing options.
Australia and New Zealand is a drop in the ocean for Pernod Ricard, which posted a 13 per cent rise in
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