Georgia Capital PLC (the "Group" or "Georgia Capital") announces that the Group’s wine business (the “Wine Business”) has acquired a 100% equity interest in Alaverdi LTD (“Alaverdi” or the “Company”).
- Alaverdi owns 244 hectares of vineyards in the Kakheti region, the vast majority of which grow Georgia’s flagship red wine grapes, Saperavi.
- The acquisition of Alaverdi also provides the Wine Business with access to 135 hectares of free land, available for immediate vineyard development.
- The acquisition will triple the Wine Business’s production capacity from the current 9.4 million wine bottles to 28.4 million wine bottles per annum, which provides substantial relief in planned capital expenditures for the next few years.
- Following the acquisition, the Wine Business will have 695 hectares of vineyards with additional 180 hectares of free land available for immediate vineyard development, in line with its target to reach a vineyard base of 1,000 hectares.
- Based on Alaverdi’s unaudited management estimates for the first half of 2019, the Company’s revenues and EBITDA were US$ 2.2 million and US$ 0.9 million, respectively.
