Xanadu Wines, whose 2000 Chardonnay greatly impressed me and the judges of the International Wine Challenge in London recently, has paid A$3.7 million for the key brands and business name of failed South Australian maker Norman Wines. This deal initially fell through when Normans announced its receivership three months ago, but includes the Clarendon Winery and its stock, plus the retention of its winery staff. Xanadu justifies the purchase on the grounds that it provides all the assets it wanted when its negotiations with Normans began and it should ‘fast track’ its export development by five years. Xanadu anticipates a net profit after tax for the financial year ending June 30th 2002, including Norman’s returns for less than eight months trading, of A$2.3m. It has reported an annual profit of A$758,000 for the last financial year, more than A$200,000 above prospectus forecasts.
