Wine and spirits producer Pernod Ricard has hired Morgan Stanley and JPMorgan for a strategic review of its Australia and New Zealand business.
Sales of the unit may be expected by late October, the Australian Financial Review reported. The company’s portfolio includes the Jacob’s Creek, St Hugo, and George Wyndham brands in Australia and the Brancott Estate and Stoneleigh brands in New Zealand.
The AFR said the Jacob’s Creek brand could be expected to draw significant attention.
In 2019, the Paris-listed company attempted to put a portfolio of its wine brands including Jacob’s Creek for sale, with the help of the two investment banks. The unit, which at that time was estimated to be valued at $1 billion, attracted interest from Accolade Wines, PAI Partners, Penfolds, Treasury Wine Estates, KKR, and TPG Capital.
The AFR noted that Morgan Stanley and JPMorgan may remove Accolade Wines, owned by The Carlyle Group, from potential buyers this time as it faces a huge debt and has tapped Rothschild & Co for refinancing options.
Pernod Ricard’s Australian and New Zealand business booked a 13 percent increase in net sales to €12.14 billion in the last financial year. Its assets include Chivas Regal, The Glenlivet and Jameson whiskeys, Absolut and Wyborowa vodkas, and Pernod and Ricard labels.
Pernod Ricard’s strategic review comes as another wine company, Australian Vintage, launched a strategic review for its business due to economic pressures it faces.
The report added that Accolade has sold its House of Arras sparkling wines brand and vineyards, and the Bay of Fires winery and cellar door in Tasmania to Handpicked Wines for an undisclosed amount.