Bank of the West Commercial Banking Group Led the Syndication in the Acquisition of Duckhorn Wine Company by TSG Consumer Partners
SAN FRANCISCO, CA | Dec 08, 2016
- Transaction includes six wineries along with more than 600 acres of estate vineyards
- U.S. has become the largest wine consuming nation, accounting for 13.0% of global wine consumption1
Bank of the West's Commercial Banking Group announced today that it led the syndication for the financing of the acquisition of Duckhorn Wine Company (DWC) by the strategic equity investor, TSG Consumer Partners, LLC. The transaction encompasses all six DWC wineries – Duckhorn Vineyards, Goldeneye, Paraduxx, Migration, Decoy and Canvasback – their corresponding properties, along with estate vineyard holdings spanning more than 600 acres in California's Napa Valley, Sonoma County, Anderson Valley, and Washington State's Red Mountain. Adam Beak, head of the Beverage Group for Bank of the West Commercial Banking Group, led the transaction for the Bank.
"In an increasingly complex business environment, companies turn to Bank of the West to meet the rapidly changing needs of their growing businesses in an evolving global marketplace," noted Jean-Marc Torre, head of the Commercial Banking Group. "Our deep sector expertise coupled with our client relationships in the wine industry enabled our team to accomplish this industry-leading transaction."
Throughout its four-decade history, DWC has been a wine industry pioneer and leader, with Duckhorn Vineyards playing a key role in the emergence of Napa Valley as a world-renowned wine region, Paraduxx championing iconic Napa Valley red blends, and Goldeneye establishing the Anderson Valley as a top Pinot Noir region. The company's strategy has been to leverage its world-class winemaking, hospitality and distribution network to establish an iconic portfolio of non-competing wineries that cater to a wide variety of luxury consumers. By focusing on strategically expanding its reach and offerings while continuously improving operations, DWC has been able to create one of North America's most acclaimed wine companies, while staying true to its historic roots.
Jamie O'Hara, President of TSG Consumer Partners commented, "We were pleased to have partnered with Bank of the West in the acquisition of Duckhorn Wine Company. They brought a deep understanding of the wine industry and a solutions-oriented approach to help us close this important transaction."
As one of the nation's largest commercial lenders to agribusiness2, Bank of the West possesses deep wine industry knowledge, and through its parent company BNP Paribas, global connections in key markets throughout the world. This detailed understanding and broad experience underpinned the Bank's ability to find a solution to meet the needs of these businesses. "Consumer consumption, the premiumization of the industry, and the U.S. economy are driving growth in the U.S. premium wine industry," said Adam Beak. "Duckhorn Wine Company is a highly regarded global brand, synonymous with exceptional winemaking and we are pleased to have assisted the company in this important deal."
About TSG Consumer Partners
TSG Consumer Partners, LLC is a leading investment firm with $5 billion of assets under management, focused exclusively on the branded consumer sector. Since its founding in 1987, TSG has been an active investor in the food, beverage, restaurant, beauty, personal care, household and apparel & accessories, and e-commerce sectors. Representative past and present partner companies include vitaminwater, thinkThin, popchips, Muscle Milk, Stumptown, Pabst, Planet Fitness, REVOLVE, PAIGE, Smashbox Cosmetics, Pureology, Sexy Hair, e.l.f. cosmetics and IT Cosmetics.
About Duckhorn Wine Company
Duckhorn Wine Company has helped set the standard for American fine wine for four decades. Founded with the launch of Duckhorn Vineyards in 1976, the Duckhorn portfolio has evolved to include Goldeneye, Paraduxx, Migration, Decoy and Canvasback, each with its own dedicated winemaker. With more than 600 acres of acclaimed estate vineyards, along with grapes from the finest growers, each winery has its own focused winegrowing program from which to make its wines. Duckhorn Wine Company wines are available throughout the United States, on five continents, and in over 50 countries. For more information, visit Duckhorn.com.
About Bank of the West Commercial Banking Group
Bank of the West's Commercial Banking Group team meets the rapidly changing needs of growing businesses with annual revenues of $25 million and higher. With specialized sector expertise, the Group anticipates and tackles the challenges businesses face in industries including agriculture, healthcare, commercial real estate, manufacturing, religious institutions, and technology. The Commercial Banking Group offers clients personalized relationships and community ties of a local bank backed by the international capabilities of BNP Paribas.
About Bank of the West
Bank of the West is a regional financial services company headquartered in San Francisco with $82.6 billion in assets as of September 30, 2016. Founded in 1874, Bank of the West provides a wide range of personal, commercial, wealth management and international banking services through more than 600 branches and offices in 23 states and digital channels. Bank of the West is a subsidiary of BNP Paribas, which has a presence in 75 countries with more than 189,000 employees. To learn more about Bank of the West, visit About Us at Bank of the West.com.
Anita Fox, Corporate Communications
Bank of the West
1Source: Euromonitor, 2015
2Source: American Bankers Association, 2016.