Madison Wine Announces Intention to Buy Acker

WINE TALK
#1

developing news story…

http://finance.yahoo.com/news/madison-wine-announces-intention-acquire-102800098.html

Noticed that Madison was briefly talked about in relation to its owner having a minority stake in Acker’s HK operations in this thread:

http://www.wineberserkers.com/forum/viewtopic.php?f=1&t=61172&p=1532111&hilit=Madison#p1532111

#2

Very interesting, as Sargeant Schultz used to say.

It’s very hard to tell from the announcement what they’re buying into – the combined US retail/auction business, just the U.S. auction part or “Acker Merrall & Condit Asia Ltd.”

#3

Going once…going twice…

#4

Interesting acquisition. 45% of the equity and 2 of 5 board seats, if I’m reading this right.

#5

Not Sargeant Schultz

http://www.youtube.com/watch?v=krD4hdGvGHM

http://www.youtube.com/watch?v=34ag4nkSh7Q

#6

Ha! So right, Howard.

And sad that we’re both old enough to know who that first guy is.

#7

I don’t understand why someone would buy in, and wear the unknown potential legal liabilities. Are they getting an indemnification from the sellers? What is there of value that can’t just be hired away/poached from them?

#8

  1. Guanxi.

  2. Ready access to the US market w/out the need to build a name.

  3. A good way to unload all the '82 Lafite they’ve been producing the past few years.

#9

If Madison is buying a 45% share and will appoint two of the five board seats, who owns the remaining 55% and gets to appoint the remaining 3 seats on the board?

#10

Acker?

#11

David,

And if it’s Acker, doesn’t their majority position mean that they remain in control? In other words, Madison isn’t really buying Acker, Acker is bringing them on as a junior partner?

The linked article didn’t provide much information one way or the other.

#12

Isn’t Madison Rudy’s family’s holding company?

For holding bags.

#13

From the article…

The proposed expansion of the Group’s business into upstream activities, in synergy with our existing engagement downstream, will ensure a sufficient supply of products and increase our distribution channels

Does this mean end to end counterfeiting or perhaps a ‘direct to consumer’ operation for fakes.

#14

That’s why I questioned the press release above. You can’t really tell what’s happening from the release

#15

Acker Wine Auction Sale Raises Questions

http://www.wine-searcher.com/m/2016/04/acker-wine-auction-sale-raises-questions