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AUSTRALIA'S BRIAN MCGUIGAN, SIMEON WINES FORM ALLIANCE.
SYDNEY, June 1 Asia Pulse - Brian McGuigan Wines Ltd (ASX:MGW) has signed an agreement with Simeon Wines Ltd (ASX:SWS) on the creation of a strategic winemaking and domestic distribution alliance to take effect July 1.
Both companies said the alliance would create a new force in the Australian wine industry and "real value for the shareholders of both companies".
They will form a new national distribution company, Icon Brands owned 100 per cent by McGuigan, which will market McGuigan, Yaldara and other brands.
The company's chief executive Brian McGuigan and Neil MacKenzie said the alliance would combine McGuigan's marketing, brand building and vineyard management strengths, while Simeon was one of the nation's largest winemakers.
"We needed a strong production presence in South Australia and we needed national distribution to support our retail and brand marketing strength," Mr McGuigan said.
"This alliance delivers both."
Mr MacKenzie said: "The alliance provides both companies with a strong platform to accelerate growth."
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Source: HighBeam Research, AUSTRALIA'S BRIAN MCGUIGAN, SIMEON WINES FORM ALLIANCE.