Wine warehouse chain Majestic Wine Plc, has acquired fine wine specialist and family-run business Law & Wheeler for up to £6 million. The deal is being funded by a new term loan arranged with Barclays Bank.

Wine warehouse chain Majestic Wine Plc, has acquired fine wine specialist and family-run business Law & Wheeler for up to £6 million. The deal is being funded by a new term loan arranged with Barclays Bank.

The acquisition includes all subsidiaries of Lay & Wheeler including Vinotheque Holdings, WBI Holdco and WBI. Lay & Wheeler reported profits before tax of £500,000 in the year to March 2008, and the deal is expected to be earnings enhancing within the first year.

Majestic has achieved strong growth in sales of wine at £20 and above through fine wine displays introduced into over a third of its 147 stores. The acquisition of Lay & Wheeler will enable Majestic to offer its customers a fine wine service from the vineyard to storage, cellar management and then secure delivery to their home, or sale within the wider fine wine market.

Steve Lewis, Majestic Wine chief executive, said: “Given the clear and continuing appetite of our customers for fine wine, Lay & Wheeler is an extremely good fit with Majestic. This acquisition will allow us to greatly extend this important offering and help continue the Majestic growth story.”