May 14 (SeeNews) - Bucharest-listed Purcari Wineries [BSE:WINE] said on Friday that it has acquired 10% of Czech online retailer 8Wines.com.
Purcari will be the first external investor in the company’s capital and will be granted the option to further increase its participation at a pre-defined valuation during a set period of time, it said in a press release.
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"In addition to this being a very compelling investment on its own, we see a significant strategic benefit for Purcari in building our
ecommerce capabilities, which are crucial in the post-Covid market reality. As a minority investor, we are committed to preserve 8Wines’ management autonomy, while bringing a valuable wine-producer perspective to the table, to the benefit of all 8Wine’s consumers and suppliers," Purcari chief operating officer Eugen Comendant said.
The investment is expected to bring significant strategic benefits for Purcari in building out its ecommerce capabilities, which are crucial in the post-Covid market reality, Purcari also said.
"The pandemic has impacted consumer behaviours, resulting in a dramatically accelerated shift towards online purchasing habits. With our strong technological backbone, lean operations, and obsession with making the customer happy, we are well positioned to build a global leader in the developing landscape of specialised wine e-commerce. Purcari's investment brings us one step closer to that vision," 8Wines co-founder and CEO Vasily Dinkov said.
Founded in 2015 and headquartered in Prague, 8Wines.com is an independent online wine retailer specialising in selling premium wines on the EU market and beyond. The company booked revenues of 1.5 million euro ($1.8 million) in 2020, up 2.9 times year-on-year, and targets an increase to 4.5 million euro for 2021. 8Wines makes deliveries to over 40 markets, primarily in Europe, but extending as far away as Australia and Singapore.
Founded in 1827, Purcari Wineries Plc is one of the largest wine and brandy groups in the CEE region. The group manages over 1,300 hectares of vineyards and operates four production platforms in Romania and Moldova. Purcari is the leader in the premium wine segment in Romania, with a 30% share, and the largest wine exporter from Moldova, delivering to over 30 countries.
Its net profit grew by an annual 49% last year - to 60.44 million lei ($15 million/ 12 million euro), supported by the gain from the sale of the group’s stake in Glass Container Company (GCC) to Vetropack Austria Holding in December.
Purcari Wineries shares traded 1.07% higher at 28.3 lei as at 1010 CET on Friday on the BVB.
(1 euro=4.9265 lei)