Britain's biggest wine producer Chapel Down is considering putting itself up for sale as part of a review into options to fund its future growth as it plans to plant new vineyards and build a new winery, it said.
'As part of the review, the board will consider all alternatives, including investment from existing shareholders, investment from new shareholders, a sale of the company, and other relevant transactions,' the company said in statement.
Its shares on Britain's junior AIM market closed on Monday at 65.5 pence, giving it a market value of £112 million (€132.5 million).
Founded in 2002, Chapel Down is based in Kent, southeast England, and has grown into Britain's best-known and largest producer with last year's harvest expected to make about 3.4 million bottles of sparkling and still wines.
While England's wine industry is still small scale, temperatures warmed by climate change have in recent decades provided better growing conditions for grapes, and there is strengthening demand for local fizz in the home market.
International Interest
The quality of the wines being produced in England has also attracted international interest.
Taittinger and Pommery, two of France's best-known Champagne houses, have bought land and planted vines in England, while the world's biggest sparkling wine company, Henkell Freixenet, acquired an English wine estate, Bolney, in 2022.
'There can be no certainty that a transaction will be pursued by the company, nor as to the terms of any eventual transaction,' Chapel Down said in a statement.
The company said that Rothschild & Co was acting as the lead financial adviser in relation to the strategic review.
After posting revenue of £18 million (€21.3 million) for 2023, the company said it was on track for double-digit sales growth in 2024 and added it had a strong balance sheet with headroom on its debt facility of £12 million (€14.2 million) and a deal to extend this facility.
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