The household possession of Canadian wine producer Andrew Peller is coming to an finish via a sale to property and insurance coverage group Fairfax Monetary.
The all-cash transaction provides the Peller Estates model proprietor an enterprise worth of C$579m ($413.8m).
Below the phrases of the deal, the holders of Andrew Peller’s class A shares will obtain C$8 for every share. Buyers with class B shares can be paid C$12 per share.
Andrew Peller stated the deal follows a assessment of “strategic alternate options”.
Paul Dubkowski, the corporate’s chief government, known as the deal “a compelling final result” for shareholders.
Fairfax’s provide is 41% above the worth at which Andrew Peller shares closed on 12 June and a 42% premium over the 20-day common for the wine group’s Class A shares. The bid equates to premiums of 70% and 66% for Class B traders.
Andrew Peller stated the provide has the assist of its two largest shareholders: Peller Household Enterprises Inc; and John Peller and his affiliate entities.
John Peller and “sure associates” have signed an fairness rollover take care of Fairfax, protecting roughly 15% of Andrew Peller’s Class A shares and 25% of its Class B inventory, for shares within the new proprietor.
Dubkowski, who was promoted from CFO to chief government in 2024, stated: “Importantly, we imagine Fairfax is the precise long-term associate for the corporate. Their funding method, monetary power and long-term orientation present a robust basis to proceed constructing our enterprise and supporting the continuing progress of the Canadian wine trade.”
Dubkowski and present CFO Renee Cauchi are anticipated to retain their present positions on the firm.
The transaction is because of shut within the third quarter, contingent on shareholder and different approvals.
Andrew Peller’s board and particular committee “unanimously” accredited the deal and really helpful shareholders to vote in favour.
“We’re happy to associate with John Peller to amass Andrew Peller Restricted, led by its chief government officer, Paul Dubkowski. The Peller household has been a number one identify in wine in Canada for generations, and we sit up for working with the complete Peller group to proceed the event and success of this nice Canadian firm over the long run,” Fairfax chairman and CEO Prem Watsa stated.
In keeping with Andrew Peller’s 2025 annual report, the corporate has 50 manufacturers throughout wine, spirits and cider.
For the 12 months ended 31 March 2025, Andrew Peller generated income of C$389.6m, up 1% from the prior yr, whereas EBITA elevated 25% to C$62.9m. Annual web earnings stood at C$11.1m, reversing the online lack of C$2.9m a yr earlier.
