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BUSINESS NEWS: Syndicate bids $90m for Legacy assets
A consortium of investors has bid US$90 million for the Legacy Estate Group wineries. Legacy, which filed one of the largest bankruptcies in the history of the US wine trade, acquired three wineries after it was established in 2000.
These wineries have attracted substantial interest from potential bidders including FAB Acquisition Company, the firm led by Agustin Huneeus, whose family owns the Quintessa winery in Napa and the Veramonte winery in Chile.
Several other wineries, who have expressed interest in acquiring Legacy’s assets, will be given the opportunity to put in a counter bid. According to industry speculation, interested parties include Diageo, the world’s largest spirits company, and Santa Rosa’s Jackson Family Wines. Calvin and Dev Sidhu, who bought Freemark Abbey in St Helena in 2001, filed for bankruptcy in November 2005 after defaulting on the US$53m loan they had taken out to buy Arrowood Winery Vineyards in Glen Ellen and Byron on the Central Coast.
Legacy, whose total debt is estimated at US$95m, has asked to be allowed to sell all three wineries to Huneeus’ investment group. The winning bid will be chosen through an auction process.
© db August 2006