Major acquisition for Berkmann

Berkmann Wine Cellars has bought New World specialist Vinoceros and Spanish on-trade specialist Laymont & Shaw. The deal, for an undisclosed sum, will be concluded tomorrow, May 1. The companies will continue to operate as separate identities.

According to Berkmann managing director Dinesh Changela, the move will significantly strengthen the company’s position. “We were weak in the independent retail sector and had identified this as an area we wanted to develop,” he explains. “We also wanted to develop the Spanish offer. We are very strong on other countries, but Spain was a weakness. (Securing Laymont & Shaw) is great news for our existing Spanish division.”

The three organisations have very diverse strengths, and Changela believes this makes the deal particularly effective for the growth of the company. Berkmann has strong roots in the UK, but has been pursuing an aggressive export strategy in the last year, with a particular emphasis on European markets and India. “It’s a major step up for the business … we saw Vinoceros’ soft global brands as a great opportunity to develop our exports.”

According to Changela, the deal represents the culmination of a “medium term project” that has been under discussion for the last three months. When change of ownership takes place tomorrow, however, he anticipates a smooth transition. “The divisions will operate separately and maintain their own identity; we won’t bring them into one group.” The coming months may yield certain “back office synergies”, but other than that there is no plan for significant integration of the businesses.

Ben Grant, 30/04/08