Digital Wine Ventures Limited has entered into an agreement to acquire 100 per cent of the issued capital of Wine Delivery Australia, a South Australian-based fourth-party logistics provider servicing the wine industry.
As part of the acquisition, James Munn, founder and General Manager of Wine Delivery Australia, will be joining WineDepot executive team as Head of Business Development (Logistics).
Wine Delivery Australia is an Adelaide-based company that provides 4PL wine logistics services to South Australian wineries that allows them to dispatch orders directly to customers from their cellar doors, more economically than through the mainstream carriers.
The key difference with WDA’s model to WineDepot’s is that it involves collecting freight from winery cellar doors, consolidating it at a regional level, then transporting it to capital cities where it is cross docked and routed to final mile couriers who deliver the order to the end consumers.
“By combining forces with WineDepot, I am confident that we have a fulfilment solution capable of servicing every winery in the country. I am genuinely excited to be part of the team creating a platform that has the potential to release so much value back to the wine producers, who are at the very heart of the wine supply chain,” Munn said.
The $2.4 million total consideration for the acquisition will be satisfied by $600,000 cash and the issue of 40.7 million fully paid ordinary shares in DW8 at a deemed issue price of $0.04426 each.
In light of the timing of the Wine Delivery Australia acquisition, the company board has decided to push back the launch of WineDepot’s Direct-to-Trade Marketplace until March 2021. – BusinessNewsAsia.com