Vasse Felix to acquire Watershed Premium Wines for AU$20 million

Margaret River winery Vasse Felix is in the process of purchasing Watershed Premium Wines from for a reported sum of AU$20 million to expand its Chardonnay production.

The sale would allow Vasse Felix to acquire Watershed Premium Wines’ 80 hectares of vineyards, winery, cellar door and restaurant, according to local Australian media reports.

The acquisition will increase Vasse Felix’s vineyard holdings to more than 300 ha across four different sites in the Margaret River-Cowaramup region, and consequently increase its wine production by 10%.

According to Vasse Felix chief executive Paul Holmes a Court, the purchase would boost Vasse Felix’s Chardonnay production from 25,000 cases to about 35,000 in the short term, while eventually supplying fruit to support projected export growth in the future.

The deal however is still subject to Watershed shareholder approval.

The purchase came after Vasee Felix bought 37.5 ha of vineyards from Watershed three years ago for AU$3.3 million.

“The fruit has proven to be excellent, particularly the Chardonnay, so for us the opportunity to expand this asset is really exciting,” Holmes a Court told Business News Western Australia.

“Like a lot of people in the wine business, I’ve been really impressed with what Geoff (Barrett) and his team have done with Watershed.”

Watershed was founded by Geoff Barrett in 1999, and also makes Cabernet Sauvignon, Shiraz and Sauvignon Blanc.

It’s reported that Watershed will continue to operate independently, selling its wine under its own label, and its cellar door and restaurant will continue to operate from the current site under a two-year lease agreement.