Canada wine firm Andrew Peller sold to property and insurance group

The Canadian wine producer Andrew Peller, a family-owned business, is undergoing a significant transition as it is being sold to property and insurance group Fairfax Financial. The all-cash transaction values the Peller Estates brand owner at C$579m ($413.8m), marking the end of the family’s ownership.

The deal, which has been described as a compelling outcome for shareholders by the company’s chief executive Paul Dubkowski, comes after a thorough review of strategic alternatives. Under the terms of the agreement, holders of class A shares will receive C$8 per share, while investors with class B shares will be paid C$12 per share.

Fairfax’s offer represents a 41% premium over the closing price of Andrew Peller shares on June 12 and a 42% premium over the 20-day average for the wine group’s Class A shares. The bid also equates to premiums of 70% and 66% for Class B investors. The transaction has received the support of the company’s 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 approximately 15% of Andrew Peller’s Class A shares and 25% of its Class B shares, in exchange for shares in the new owner. Dubkowski, who was promoted from CFO to chief executive in 2024, expressed confidence in Fairfax as the right long-term partner for the company, citing their investment approach, financial strength, and long-term orientation.

The current CEO and CFO, Paul Dubkowski and Renee Cauchi, are expected to retain their positions following the completion of the transaction, which is scheduled to close in the third quarter, subject to shareholder and other approvals. Andrew Peller’s board and special committee have unanimously approved the deal and recommended shareholders to vote in favor of it.

Fairfax chairman and CEO Prem Watsa expressed excitement about partnering with John Peller to acquire Andrew Peller Limited, a company with a rich history in the Canadian wine industry. According to Andrew Peller’s 2025 annual report, the company boasts 50 brands across wine, spirits, and cider, generating revenue of C$389.6m for the 12 months ended March 31, 2025.

In the third quarter of fiscal 2026, Andrew Peller reported revenue of C$108.8m, up from C$105.4m in the same period a year earlier. EBITA increased by 6.1% to C$19.7m, while net earnings improved to C$7.9m. The sale of Andrew Peller to Fairfax marks a significant milestone in the company’s history, paving the way for continued growth and success in the Canadian wine industry.