Foley Family Wines to buy Mt Difficulty Wines

15 November 2017


Foley Family Wines to buy Mt Difficulty Wines


Foley Family Wines Limited [NZX: FFW] announces that it has entered into a
conditional sale and purchase agreement with Mt Difficulty Wines Limited (MDW) to
purchase all of the Mt Difficulty Wines assets and business, including its iconic Central
Otago wine brands Mt Difficulty and Roaring Meg and its property interests, winemaking
and cellar door facilities, for an aggregate purchase price of approximately $55 million
(subject to working capital adjustments).

Completion of the transaction agreement is conditional on a number of matters including
FFW’s shareholder approval, Overseas Investment Office approval, the approval of
MDW’s shareholders and obtaining key third party consents. These are required to be
obtained by various dates, with 30 September 2018 being the final date for satisfaction of
all conditions.

Subject to FFW’s shareholder approval, which is proposed to be sought in the first quarter
of 2018, it is anticipated the acquisition will be completed by around 30 June 2018.

FFW will need to arrange funding for the transaction, which the Board is confident will be
available when needed. FFW is identifying the preferred financing structure for the
transaction, in the context of optimising its overall capital structure. It has received
positive preliminary indications from its bankers, and will progress this, alongside any
other capital raising options identified by the Board. FFW will update the market once
these matters have been determined.

FFW’s chief executive officer Mark Turnbull said “FFW had advised the market earlier in
the year that the company was seeking further acquisitions. We are delighted that FFW
has been able to conclude the transaction with such an iconic Central Otago wine
company."


Authorised for public release.

For further information please contact:
Mark Turnbull
CEO, Foley Family Wines Limited
PO Box 67, Renwick, 7243, Marlborough
Tel: +64 21 714 885
Email: mark@ffw.co.nz