NEWS
09/11/2017 09:06 EDT | Updated 09/11/2017 09:20 EDT

Andrew Peller to buy three B.C. wineries for combined price of $95 million

GRIMSBY, Ont. — Andrew Peller Ltd. (TSX:ADW.A, TSX:ADW.B) has signed deals to acquire three B.C. wineries for a combined price of $95 million.

The Ontario-based wine producer says it has signed definitive agreements to acquire Black Hills Estate Winery and Gray Monk Estate Winery and a letter of intent to acquire Tinhorn Creek Vineyards.

Black Hills Estate is located on the Black Sage Bench region near Oliver, B.C., and is the producer of Nota Bene, a premium red wine. Gray Monk is located north of Kelowna, B.C., while Tinhorn Creek Vineyards is on the Golden Mile Bench, near Oliver.

Andrew Peller says the deal will be funded though a combination of $78 million in cash from the company's credit lines and $17 million worth of class A common shares.

The company says it expects to close all of the deals by the end of October.

Andrew Peller has wineries in British Columbia, Ontario, and Nova Scotia.