Bank of the West Commercial Banking Group Leads Financing for the Largest Private Equity Purchase of a U.S. Wine Company
San Francisco, CA | November 17, 2021
Sycamore Partners acquired Ste. Michelle for $1.2B
Bank of the West, part of BNP Paribas Group, announced that it led the financing for the acquisition of Ste. Michelle Wine Estates by the private equity firm Sycamore Partners Management (SPM). SPM purchased Ste. Michelle Wine Estates for $1.2 billion, making it the largest private equity purchase of a wine business in the U.S.
Ste. Michelle is the largest winery in the Pacific Northwest, and third-largest premium winery in the U.S. With over 30,000 acres of vineyards spread across three states, it produces 60 percent of Washington’s annual wine sales. Some of its popular brands include Chateau Ste. Michelle, 14 Hands, Erath, and in California, Stags Leap.
“Private equity financing is becoming increasingly complex and nuanced, especially in today’s dynamic, global marketplace. This deal is no exception,” said Adam Beak, Managing Director, Head of Beverage Vertical, Bank of the West. “Our comprehensive understanding of the wine marketplace—from go-to-market approach, to inventory management, to the unique financial structures—were instrumental in this milestone transaction.”
“Bank of the West executed this complex transaction flawlessly,” said Paul Fossati, Managing Director Capital Markets, Sycamore Partners. “Bank of the West brings a unique combination of wine sector expertise, local market knowledge, flexible financial solutions, and broad investor reach. Their holistic view of the ecosystem was critical in this effort.”
Bank of the West is one of the nation’s largest commercial lenders to the wine industry and brings in-depth experience and global connections. To learn more about Bank of the West’s wine and agribusiness expertise, please visit: https://www.bankofthewest.com/commercial-banking
About Chateau Ste. Michelle
Founded in 1934, Chateau Ste. Michelle pioneered vinifera grape growing in Washington State and has been producing classic European varietal wines under the Ste. Michelle label since 1967. The winery combines an ongoing dedication to research with a commitment to classic winemaking traditions. The winery owns 3,900 acres of vineyards in the Columbia Valley of Eastern Washington, including Canoe Ridge Estate and Cold Creek. Chateau Ste. Michelle enjoys winemaking partnerships with some of the world’s most distinguished vintners. For more information about Chateau Ste Michelle, please visit www.ste-michelle.com.
About Sycamore Partners
Sycamore Partners is a private equity firm based in New York. The firm specializes in consumer, distribution and retail-related investments and partners with management teams to improve the operating profitability and strategic value of their business. With approximately $10 billion in aggregate committed capital raised since its inception in 2011, Sycamore Partners’ investors include leading endowments, financial institutions, family offices, pension plans and sovereign wealth funds. For more information on Sycamore Partners, visit www.sycamorepartners.com.
About Bank of the West
At Bank of the West, we know money deposited in a bank has the power to finance positive change. So we are taking action to ensure our activities help protect the planet, improve people's lives, and strengthen communities. We are redefining banking for a better future by focusing on areas where we believe we can have a real impact: supporting energy transition, helping enable women entrepreneurs, and financing innovative start-ups. As the bank for a changing world, Bank of the West is committed to sustainable finance along with our parent company BNP Paribas. Through Digital Channels and offices across the U.S., Bank of the West provides financial tools and resources to more than 2 million individuals, families and businesses.
© 2021 Bank of the West. Member FDIC. Equal Housing Lender . Doing business in South Dakota as Bank of the West California.
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