Financiers scoop up Unwins

PRIVATELY-OWNED off-licence chain Unwins was snapped up by a private equity firm today, bringing an end to 162 years of operations by its founding family.

The deal took some observers by surprise. Although DM Private Equity had expressed an interest in taking over the chain many had thought talks had broken down. Recently the firm said it had put its sell-off plans on hold and entered a £30m sale-and-leaseback of its property portfolio.

Another takeover bid, by rival Oddbins, failed to win enough support and lapsed. Castel, the French wine business that runs Oddbins, had hoped to use the acquisition to create a 500-strong chain of Oddbins outlets.

Terms of the acquisition by DM Private Equity were not disclosed. The private equity firm already owns stakes in a number of private and publicly-quoted cmopanies, including a 5% holding in Alternative Investment Market (Aim)-listed Palandri, the Western Australian wine producer. Philip Wetz, a former joint managing director of Unwins and a relative of company founder Michael Wetz, is a non-executive director of Palandri.

Unwins was put up for sale last May after more than 50 potential bid approaches and the process was managed by Grant Thornton. Apart from Oddbins, rivals Threshers, Victoria Wine and Wine Rack were all seen as likely suitors ? and even supermarkets, keen to expand their High Street convenience stores presence ? were thought to have been interested in the chain. Unwins returned to profitability at the trading level last year, reporting earnings before interest, tax and exceptionals of £850,000, up from £419,000.

Phillip Cook, chairman of DM Private Equity, said the firm looked forward to building on the company's existing brand and securing the future of the chain and its employees.

'We look forward to building on the hard work of the Unwins' staff, to strengthening the brand name and to growing what is already an extremely successful retailing operation,' he added.