De Bortoli Wines’ last-ditch McWilliam’s offer rebuffed

Australia’s eighth-largest wine group, De Bortoli Wines, lobbed a last-minute buyout offer to KPMG, the administrators of McWilliam’s Wines, which it claims was higher than the one that was accepted and led to the carve-up of the company into two parts.

But KPMG defends the process, saying that when it signed a deal on April 1 to sell the 144-year-old McWilliam’s business in two parts to buyers Calabria Wines and Medich Family Office it was the best offer on the table.

McWilliam’s Wines is being split up, with Calabria Wines acquiring the Hanwood winery and the Medich Family Office buying the Mount Pleasant winery in the Hunter Valley.

Managing director of De Bortoli Wines Darren De Bortoli said on Monday that his company, which has annual revenues of about $140 million, had been a serious contender in the sale process and lifted its offer when it learned that McWilliam’s was to be sold in two parts.

Mr De Bortoli said the group had been a serious buyer throughout the latest sale process which had to be restarted by KPMG late last year when a previously anointed buyer, Prcstnt Asset Management, failed in October to complete a sale struck first time around.

KPMG announced publicly on April 6 that the 144-year-old McWilliam’s Wines business would be split between Calabria Wines and Medich Family Office in a deal worth $40 million-plus.

A note to creditors sent by KPMG outlining the sale to Calabria and Medich stated that a sale agreement had been signed on April 1.