BGEO Group PLC (the “Group” or “BGEO”), announces that its investment business holding company, JSC Georgia Capital (“Georgia Capital”), has acquired a 60% indirect controlling interest in Kindzmarauli Marani, LLC (“Kindzmarauli”) through a locally established special-purpose vehicle for a total consideration of US$7.25 million (representing a cash payment for an equity stake and the buyout of an existing shareholder loan). Kindzmarauli is a producer of exquisite Georgian wines and spirits, which owns 350 hectares of vineyards in Georgia’s Kakheti region. Georgia Capital will consolidate the results of Kindzmarauli’s operations from the acquisition date, and expects that the acquisition will complement and strengthen its existing beverage business with an increased presence in the growing domestic and international markets for Georgian wine.
Irakli Gilauri, BGEO CEO commented: “I am delighted to announce that our beverage business has made a major step towards its wine business development strategy to reach a vineyard base of 1,000 hectares over the next three years. With this acquisition, we have now reached 436 hectares of vineyards to support ourwine production, which has been supported by significant growth opportunities on international markets provided by Georgia’s various free trade agreements, including those with China and the European Union.”
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