Deal makers have targeted the wine industry, as investors bet on rising prices for winery acreage despite a Covid-19 hit to demand for the beverage. Deals by private-equity funds to invest in wineries, vineyards and distributors have risen 75% in 2021 so far, compared with last year, according to Refinitiv. There has also been a jump in mergers and acquisitions, with companies spending $8.1 billion this year to snap up wine-related firms, compared with $1.8 billion last year, Pitchbook data showed.
A SPAC is a shell company that lists on an exchange and then seeks to acquire a private company to take it public. Many have bought software and clean-tech industries, but are now looking further afield. “With more than 430 SPACs in 2021 looking for acquisition targets, there are not enough unicorns ready to go public,” said Jim Osman, portfolio lead at research firm Edge Group. As a result, “SPACs are looking for alternative companies.”