BODEGAS MARTÍN CÓDAX ACQUIRES ADEGAS GALEGAS

05/03/2012

Bodegas Martín Códax

Bodegas Martín Códax acquires Adegas Galegas

The wine cellar also acquires the installations of Transport Núñez in Cambados

Bodegas Martin Códax finalized the purchase of Adegas Galegas on March 1st, after the acceptance on part by the judge whose proposal was presented by Martin Códax to the Contest of Creditors by Adegas Galegas in court of commercial nº1 of Pontevedra, now 2 years ago. 

Since its foundation in 1993, Adegas Galegas has had a noticeable development inside the Galician sector in wine-production.  Located in the D.O. Rias Baixas, home of the Albariño wine, its expansion was greatly noticeable in the domestic market as well as abroad, surpassing amply until 2007 the average sector.

In turn, during the last 25 years Bodegas Martin Códax has followed a strategy of growth and diversification based on excellence, the innovation and the respect of the environment to being consolidated as business leader of a strategic sector in Galicia like is the winegrowing business.

The acquisition in figures.

The operation has been carried out on the properties and assets that possess Adegas Galegas:

The properties of Adegas Galegas are composed of 2 lands with vineyards (Meder and Goian) with a total extension of 7.7 while the wine cellar is located in Meder with a surface of 1830m2 built.  The judge also order the subrogation in favor of Martin Códax of the rental agreements that possessed Adegas Galegas, an estimate total of 26 hectares of vineyard distributed among O Rosal and O Condado. 

Besides the immobilized material and of the stock, Bodegas Martin Códax possesses now the property of the brand, being the most representative Veigadares, Gran Veigadares, D. Pedro de Soutomaior and Dionisos

It is a matter of wines that reached great prestige and that formed part of the great Spanish white wines and that are now in hands of Bodegas Martin Códax who pursues to relocate in  the market.

As a result from the two years of inactivity in the wine cellar, the installations of elaboration should be put ready and thus require of a strong investment for a establishment of a new room for bottling with the help of a modern machinery.   

As for the vineyards, they have been negotiated for Bodegas Martin Códax during the 2011 campaign, taking charge of their maintenance and recovery after having been abandoned since the start of the bankruptcy process.  Of all ways, Martin Códax will destine an important budgetary departure for the improvement of the vineyard and for the systems of conveyance. 

Therefore, the total amount of the operation for Martin Códax a total investment of 3.600.000 euros.

Creation of a new company:  Vineyards and Adegas Galegas S.L

The project Adegas Galegas supposes for Bodegas Martin Códax an opportunity of expansion and immediate growth that, being already leaders in Galicia, also consolidates its objective of reaching a noticeable place among the manufacturers of wines in Spain. 

The integration of Adegas Galegas inside the group Martin Códax, is formed to create a new identity "Vineyards e Adegas Galegas, S.L" participated 100% by Bodegas Martin Códax and directed by the general director of wine Cellars Martin Códax, Juan Vázquez Gancedo. 

The business will take advantage of the synergies that be generated with the parent company, the creation of 8 new direct jobs in the departments of administration, commercial, oenology, personnel of field will be necessary, apart from the eventual positions that are generated by the grape harvest and bottling. 

Forecasts in the market.

Part of the success of Martin Códax is the excellent network of distribution and of importers that have permitted to market their brands to nearly 50 countries, surpassing their export by 50% of their total sales.  The knowledge of the markets and of the competence permits detect the opportunities that insert with the business strategy designed for "Viñas e Adegas Galegas"

Adegas Galegas reached in the 2007 some maximum sales of 400,000 bottles, centered almost completely in the domestic market.

 Martin Códax intends to reach quickly that figure, using its exportation as one of the main keys for this recovery.

The wines

Martin Códax undertakes this new phase of Adegas Galegas with the same line of status quo that considers objective to devise again unique wines of quality and to situate their main brands among the great white Spanish wines in order to recover the prestige for which these wines became to be prominent for:

“D. Pedo de Soutomaior”,   albariño 100%

“Veigadares”, coupage of albariño, loureiro and treixadura, fermented in oak barrels

“Gran Veigadares”: 100% albariño produced from grapes of centurian vineyards

“Dionisos”. 100% albariño .

The respect to nature and the tradition, without forgetting the innovation and growth, will continue to be the axes of work in Adegas Galegas in this new phase that begins by the hand of Martin Códax. 

Transportations Núñez

Bodegas Martin Códax has acquired likewise the lands that belonged to Transportations Núñez, whose total surface is of 18.320m2 and of its ships with 2.515m2 built.  The locating of Transportations Núñez is strategic for Martin Códax since it confines with the own wine cellar, permitting to include a space that reaches the 46,470 meters.

This acquisition is framed inside its plan of Improvement of the Productivity, Competitiveness and Efficiency of the Business.

It is acquired Transportations Núñez with the purpose to create a logistics center that centralizes all the operations of logistics, stock, expeditions and picking of the different centers of production that has the business in Cambados, O Rosal, O Condado, Bierzo, Monterrei and Rioja. 

At present the necessary investments for the construction of the center of logistics are being carried out at full operation in the next months and in the medium term to designed the endowment of a new wine cellar with 2 million liters of capacity and a room of bottling from the latest generation. 

Once the project is finalized, 10 new direct jobs will be added.  

The total investment is estimated at 3.500.000 euro.

 

 

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