Diamond Estates Wines & Spirits Inc. (DWS) has signed two new strategic agreements to acquire Equity Wine Group and the Shiny Apple craft cider brand.
Equity Wine Group Inc. is the owner of the Creekside Estate Winery and Queenston Mile Vineyards in Ontario. The company also produces the Red Tractor Wines and Rood Apples Cider brands.
The Shiny Apple brand, first launched by Stonechurch Vineyards in 2014, is a major brand in the Ontario craft cider market.
Both brands are available for purchase through the LCBO and Ontario grocery stores.
Murray Souter, CEO of Diamond Estates, commented on the announcement.
“We are excited to be adding the Equity Wine's business and the Shiny Apple brand to our portfolio,” he said. “Not only do they represent another attractive way of serving our customers' needs, but they also provide a strong financial addition to our base business while furthering the growth of our operations nationally.”
Diamond Estates plans on raising a minimum of $8.5 million through private placements. It has entered into a proposed private placement agreement with Paradigm Capital Inc. to fund the acquisitions.
The company expects its acquisitions to generate an incremental $30 million in gross revenue and $9 million in incremental EBITDA by 2025.
“The combination of these companies creates opportunity to grow here in Ontario, across the country and into export markets,” said Equity Wines president Andrew Howard.
Diamond Estates Wines & Spirits is a producer of high-quality wines and a sales agent for over 120 beverage alcohol brands across Canada.
Diamond Estates Wines & Spirits Inc. (DWS) is currently down 5.41 per cent, trading at $0.175 per share as of 12:42 pm ET.