Luxury goods specialist Groupe Lalique has announced the acquisition of 75% of Château Lafaurie-Peyraguey for 18 million euros. The transaction will be financed by a capital increase and will strengthen the Swiss group’s presence in the wine sector. Founded in 1618, Château Lafaurie-Peyraguey is one of Bordeaux’s most prestigious vineyards, and neighbors Château d’Yquem, owned by LVMH.
The Lalique Group, a major player in crystal, perfume, hotel and catering, announced on Wednesday November 1 the acquisition of 75% of the prestigious Bordeaux vineyard Château Lafaurie-Peyraguey. The Swiss group, which has already owned the estate’s hotel-restaurant since 2021, will acquire these shares from its CEO, Silvio Denz, who acquired the Château Lafaurie-Peyraguey estate in 2014.
This acquisition, valued at 18 million euros, will be financed through a capital increase. Château Lafaurie-Peyraguey will be officially integrated into the Lalique Group’s financial results retroactively from July 1, 2023. The transaction is expected to be finalized “no later than mid-December 2023”.
In 2022, the vineyard generated sales of 1.4 million euros and recorded an operating result close to break-even. After its change of hands, the aim is to increase wine sales through Lalique’s marketing capabilities and sales network, particularly in the hotel sector.
However, we note that the acquisition cost of 18 million euros for a 75% stake in Château Lafaurie-Peyraguey is lower than the low estimate of the appraisal firm Rothschild & Co Paris, and would not include any goodwill.
Capital increase
To ensure that this acquisition does not affect its cash position, the Lalique Group will carry out a capital increase within the approved fluctuation margin. It will issue 450,000 new shares, each with a par value of 0.20 Swiss francs, at an issue price of 40 Swiss francs per share. This will increase Silvio Denz’s stake in the Lalique Group from 50.10% to 53.03%.
The new shares issued will thus be held by the vineyard’s former owner, while Swiss entrepreneur Michael Pieper, who acquired a 25% stake in Château Lafaurie-Peyraguey in 2016, will retain his interest in the property. As Chairman and majority shareholder of the Lalique Group, Silvio Denz did not participate in the Board’s discussions regarding the acquisition.
The proceeds of the capital increase will correspond to the acquisition price paid by the Lalique Group. Other shareholders will not have subscription rights.
Prestigious vineyard
Founded in 1618, Domaine Lafaurie-Peyraguey covers 47 hectares, including 30 hectares of vines. The estate includes the château, a hotel-restaurant, a cellar, warehouses, a boutique, a hangar and other structures, occupying a total of 7 hectares. This vineyard, over 400 years old, is one of the few to have been classified Premier Grand Cru in 1855.
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Featured photo : ©Château Lafaurie-Peyraguey
