While the dust is expected to settle on or just after November 30, it appears that the saga surrounding the ownership of Evans & Tate is coming to a close with the most likely outcome being that it will be purchased by McWilliam’s Wines for something akin to the AUS $100 million owed by Evans & Tate to the ANZ Bank. From several suitors, including some of Australia’s largest wine producers, the receivers, McGrath Nicol, have selected as the preferred purchaser the consortium comprising Pendulum Capital and McWilliam’s after a seven-week bidding process. The exact relationship between Pendulum and McWilliam’s has evolved considerably over the due diligence and submission process, culminating in their joint view that Evans & Tate would be better owned, managed and distributed by a single entity. In September, McWilliam’s was appointed by the ANZ Bank as Evans & Tate’s Australian agent for a twelve month period. McWilliam’s also has a strong relationship with E & J Gallo, the world’s largest wine producer, which represents its brands in export markets. It stands to reason that the Evans & Tate brand would benefit considerably through this association. While the precise break-up of Evans & Tate’s ultimate ownership will be determined over the next few weeks, during which time the partners also expect to finalise the purchase from the receivers, it remains possible that Pendulum might end up with a small stake in the final business. With its intimate knowledge of the company, largely through its stakeholder Peter Fogarty, Pendulum has actually been acting in an advisory capacity to McWilliam’s throughout the past few months of the process. Interest now shifts to the future of Oakridge, the small Yarra Valley operation which in the hands of winemaker David Bicknell has certainly developed a high level of recognition in the domestic market, based on some outstanding table wines. Given that McWilliam’s has to date shunned the opportunity to take its Lillydale Estate brand more upmarket, Oakridge could present itself as the ideal vehicle. McGrath Nicol have now entered into discussions with potential purchasers of this brand, the only significant remaining asset of Evans & Tate.
