The family ownership of Canadian wine producer Andrew Peller is coming to an end through a sale to property and insurance group Fairfax Financial.
The all-cash transaction gives the Peller Estates brand owner an enterprise value of C$579m ($413.8m).
Under the terms of the deal, the holders of Andrew Peller’s class A shares will receive C$8 for each share. Investors with class B shares will be paid C$12 per share.
Andrew Peller said the deal follows a review of “strategic alternatives”.
Paul Dubkowski, the company’s chief executive, called the deal “a compelling outcome” for shareholders.
Fairfax’s offer is 41% above the price at which Andrew Peller shares closed on 12 June and a 42% premium over the 20-day average for the wine group’s Class A shares. The bid equates to premiums of 70% and 66% for Class B investors.
Andrew Peller said the offer has the support of its two largest shareholders: Peller Family Enterprises Inc; and John Peller and his affiliate entities.
John Peller and “certain affiliates” have signed an equity rollover deal with Fairfax, covering roughly 15% of Andrew Peller’s Class A shares and 25% of its Class B stock, for shares in the new owner.
Dubkowski, who was promoted from CFO to chief executive in 2024, said: “Importantly, we believe Fairfax is the right long-term partner for the company. Their investment approach, financial strength and long-term orientation provide a strong foundation to continue building our business and supporting the ongoing growth of the Canadian wine industry.”
Dubkowski and current CFO Renee Cauchi are expected to retain their current positions at the company.
The transaction is due to close in the third quarter, contingent on shareholder and other approvals.
Andrew Peller’s board and special committee “unanimously” approved the deal and recommended shareholders to vote in favour.
“We are pleased to partner with John Peller to acquire Andrew Peller Limited, led by its chief executive officer, Paul Dubkowski. The Peller family has been a leading name in wine in Canada for generations, and we look forward to working with the entire Peller team to continue the development and success of this great Canadian company over the long term,” Fairfax chairman and CEO Prem Watsa said.
According to Andrew Peller’s 2025 annual report, the company has 50 brands across wine, spirits and cider.
For the 12 months ended 31 March 2025, Andrew Peller generated revenue of C$389.6m, up 1% from the prior year, while EBITA increased 25% to C$62.9m. Annual net earnings stood at C$11.1m, reversing the net loss of C$2.9m a year earlier.
