Lalique Group to acquire majority stake in Château Lafaurie-Peyraguey wine estate - Seite 2

Excellent fit of brands
Similar to the Scotch whisky brand The Glenturret, in which Lalique Group acquired a 50% stake in 2019, and the soon to be launched Aberturret gin brand, the acquisition of Château Lafaurie-Peyraguey will allow the group to further develop synergies with the Lalique crystal and hospitality business. Château Lafaurie-Peyraguey will thereby benefit from an increased visibility and will be able to raise its profile with existing and new target groups. Owning the wine estate’s real estate and buildings will also secure the long-term operation of the Lalique five-star Hotel and Michelin Restaurant opened in the Château in 2018. Furthermore, the land and the vineyards adjacent to Château d’Yquem, owned by LVMH group, are rare and have a significant intrinsic value. The wine growing, production, marketing and sales activities will continue to be carried out by Château Lafaurie-Peyraguey’s current management team and staff, encompassing 7 employees.  

Château Lafaurie-Peyraguey will be fully consolidated in the group’s results retroactively from 1 July 2023. In 2022, Château Lafaurie-Peyraguey generated revenue from the sale of wine of EUR 1.4 million and posted a close to break-even operating result. Following the acquisition, the plan is to increase wine sales with enhanced marketing and sales activities through Lalique’s commercial network and hospitality sector in particular.

Swiss entrepreneur Michael Pieper, who acquired a 25% share in Château Lafaurie-Peyraguey from Silvio Denz in 2016, will retain his interest in the estate also after the acquisition of the majority stake by Lalique Group. 

Transaction structure, financing 
The purchase price of EUR 18.0 million for the 75% stake in Château Lafaurie-Peyraguey is below the lower range of an independent valuation from Rothschild & Co, Paris and includes no goodwill component. As Lalique Group’s Chairman and majority shareholder, Silvio Denz did not participate in the decision-making of the group’s Board of Directors on the acquisition.

To execute the acquisition without any cash outflow, Lalique Group will carry out a capital increase within the capital band approved by shareholders, thereby issuing 450,000 new shares with a nominal value of CHF 0.20 to Silvio Denz at an issue price of CHF 40 per share, which is 23% above the market price on 31 October 2023 and 12% above the 60-day VWAP. Subject to the EUR/CHF FX rate, the proceeds from the capital increase will equal the acquisition price to be paid by Lalique Group in cash. The subscription rights of other shareholders will be excluded. As a result of the capital increase, the stake of Silvio Denz in Lalique Group is expected to increase from 50.10% to 53.03%. The transaction is expected to close by mid-December 2023 at the latest.