For the first time, Tasmania's Josef Chromy Wines has been sold - raking in $55 million, plus millions in stock.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The move, which is already being labelled one of the biggest single brand winery deals in Australian history, came about after the well-known Tasmanian brand was approached by two mainland companies.
New South Wales-based hospitality and liquor business Endeavour Group partnered with Victorian asset management company, Warakirri, to make the purchase.
Under the agreement, Warakirri, is set to acquire the 110-hectare Josef Chromy winery, cellar door, restaurant and vineyard.
The award-winning Josef Chromy Estate was established in 2004 by Tasmanian wine industry pioneer Josef Chromy who came to Australia in 1950 after fleeing the Soviet and Nazi occupation of Czechoslovakia.
"Josef Chromy Wines is an iconic business that has wonderful potential for growth and I am certain that the expertise and financial strength of the new owners combined with our excellent staff will see unprecedented expansion over coming years," Mr Chromy said.
"At 91 years of age, I feel it is appropriate that I retire from this business, however, I wish Endeavour Group and Warakirri every success for the future at Josef Chromy Wines. You can all count on me to remain a regular."
Managing director of JAC - the company that previously owned Josef Chromy Wines - Dean Cocker, said letting go of the business was a tough decision to make.
"As a family, we're very happy that the name Josef Chromy will continue to be synonymous with quality food and wine in Tasmania, no matter who owns the business," he said.
The property will become part of Warakirri's Diversified Agricultural Fund, which was established with the intent to purchase, develop and own a portfolio of investment-grade Australian agricultural assets.
Those assets are then leased to high-quality agricultural businesses, which in this case is Endeavour, after reaching a long-term agreement with Warakirri.
As a result, Endeavour is now poised to add the Josef Chromy Wines business and brand to add to its Paragon Wine Estates portfolio.
Endeavour Group Managing Director and CEO Steve Donohue said he was confident the company could build on the success of Josef Chromy Wines and expand their appeal by leveraging their brand-building capabilities, extensive store network, and capacity to invest in quality and innovation.
Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content:
- Bookmark www.examiner.com.au
- Make sure you are signed up for our breaking and regular headlines newsletters
- Follow us on Twitter: @examineronline
- Follow us on Instagram: @examineronline
- Follow us on Google News: The Examiner