Armit gets Dutch investment

British wine merchant Armit is to sell a majority stake to Baarsma Wine Group. The sale of a 75% holding, subject to antitrust authority approval, values the firm at around £14m, including its debt. Armit CEO Ian Ronald said the sale was necessary to further develop the business.

The sale will not affect the management structure at Armit, with Ronald continuing in his role as CEO, controlling the remaining 25% of shares with Chairman John Armit. In addition, Mike Laing, Phil Weeks, Graham Jeffs and Sam Paveley will become shareholders and directors.

"The new investment will enable us to develop further the strong relationships we enjoy with the world’s best wine makers, which lie at the heart of the armit business," continued Ronald. "Nothing will change in terms of the running of the business."

Armit’s private investors, including executive chairman of Marks & Spencer Sir Stuart Rose, and Michael Spencer, chief executive and founder of City broking firm Icap, will receive a windfall from the deal.

Baarsma sees the acquisition as an invaluable inroad into the UK market, in which they intend to "acquire more companies", according to their website.

‘We are very pleased with this acquisition," said Baarsma COO Cees de Rade. "We regard it as our first step into the UK. The Armit management team is very professional and motivated; furthermore this company offers many synergy possibilities within the Baarsma Wine Group. Armit also enhances our position in this higher wine segment."

Armit hope that the deal will increase their global presence, particularly in emerging markets like Russia and the Far East.

Armit supplies many of the country’s top hotels and restaurants, including Gordon Ramsey at Claridge’s, the Savoy Grill and the Dorchester, as well as fine wines to private clients. The business was founded in 1988 by John Armit, who was previously the managing director of Corney & Barrow, the wine and restaurant company.

Alexis Hercules 10/09/08