Chapel Down considers sale as it weighs funding options

(Sharecast News) - Chapel Down said on Tuesday that it is conducting a strategic review of options to fund long-term growth, which includes investment from existing and new shareholders and a potential sale of the company. The winemaker noted that its growth strategy includes investing in new vineyards, a new purpose-built winery to be operational for the 2026 harvest and the development of its brand home at Tenterden.

"Considering the timeline of these investments, the board believes that it is now appropriate to review the full range of long-term funding options that support this plan," it said.

Chapel Down said it remains on track to deliver double-digit sales growth in 2024 and retains a strong balance sheet with "significant" headroom to its existing debt facility of £12m. It has also reached agreement in principle to extend and increase this facility.

The company said there can be no certainty a transaction will be pursued, nor as to the terms of any eventual transaction.