Georgia Capital bought Alaverdi

Georgia Capital bought Alaverdi

access_time2019-08-20 13:14:17

Georgia Capital PLC on Tuesday said it has bought a 244-hectare vineyard in the Kakheti region of Georgia for an undisclosed sum.

Georgia Capital's wine business has bought Alaverdi Ltd, and alongside the 244 hectares of planted vines, there are 135 hectares of spare land which can immediately converted into vineyards.

The deal will triple Georgia Capital's wine production, it said, to 28.4 million bottles a year. Most of the output from Alaverdi is from the Saperavi red wine grape.

In the first half of 2019, Alaverdi produced revenue of USD2.2 million and earnings before interest, tax, depreciation, and amortisation of USD900,000.

 "I am pleased to announce our wine business continues to successfully progress towards its strategic priorities. The acquisition of Alaverdi is a truly compelling opportunity, which provides a clear and attractive value creation potential through cost synergies and the addition of a substantial base of high quality vineyards," Georgia Capital Chair & Chief Executive Irakli Gilauri said.

"Following the acquisition, the wine business will have three top class wineries across Kakheti's three wine-making regions with significantly enhanced production capacity. This footprint should allow the wine business to access a bigger share of export markets, while also capitalising on the growing wine tourism in Georgia."

Shares were 0.2% higher on Tuesday morning in London at a price of 1,038.50 pence each.


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