Benzinga | Sep 29, 2021 05:51AM EDT

Vintage Wine Estates Acquires Vinesse For $14M

* Vintage Wine Estates Inc (NASDAQ:VWE) has acquired all of the assets of Vinesse, LLC, a direct-to-consumer platform company specializing in wine clubs with over 60,000 members, for $14 million in cash.

* "We believe we can create significant cost synergies by bringing wine making and distribution in-house and marketing VWE's brand portfolio through their channels," said CEO Pat Roney.

* Vinesse owner Larry Dutra is expected to remain with the operations after the acquisition.

* The deal will be executed in cash with a $2.5 million earnout over three years based on specific revenue and profitability conditions.

* Price Action: VWE shares closed higher by 1.25% at $11.31 on Tuesday.