Chapel Down, the leading English winemaker, has announced a strategic review of its funding options to support ambitious growth plans.
The company’s Board aims to secure capital for investments in new vineyards, a state-of-the-art winery, and the development of its brand home in Tenterden.
Although the company is on track to deliver double-digit sales growth in 2024, Chapel Down has outlined the requirement for external funds to support its plans.
The strategic review will explore a range of funding options, including investments from existing and new shareholders, a potential sale of the company, and ‘other relevant transactions’.
Chapel Down shares were down 1% at the time of writing.
“Fancy owning an English wine maker? Now’s your chance as Chapel Down has effectively put itself up for sale,” said Russ Mould, investment director at AJ Bell.
“Coming so soon after moving from the Aquis stock exchange to AIM, one might think something negative is afoot. Yet it makes sense to have raised the company’s profile by switching exchanges ahead of putting the ‘for sale’ flag up.
“Chapel Down has made a name for itself over the years but the business appears to have a hit the ceiling in terms of scale. To grow even more, it really needs a big slug of cash to invest in the business and that might be better coming from a new, bigger owner, rather than going cap in hand to shareholders on an ad hoc basis.
“Plenty of big drinks companies would be in the market for a niche player like Chapel Down as it could add something new for them to get their teeth into, and also as a way of cross-selling products.”