TSG Consumer Partners has acquired St. Helena, California-based wine company Duckhorn Wine Company. The seller was GI Partners. No financial terms were disclosed.
SAN FRANCISCO, October 17, 2016 – Middle market private equity firm GI Partners has completed the sale of Duckhorn Wine Company to TSG Consumer Partners.
Headquartered in St. Helena, California, Duckhorn Wine Company (“DWC”) is one of North America’s premier wine companies, and has built one of the most respected wine portfolios in the world. The transaction includes all six DWC wineries: Duckhorn Vineyards, Goldeneye, Paraduxx, Migration, Decoy and Canvasback and their corresponding properties, along with an estate vineyard program spanning more than 600 acres in California’s Napa Valley, Sonoma County and Anderson Valley, and Washington State’s Red Mountain.
GI Partners acquired Duckhorn in 2007. Over the following decade, GI helped to build one of the most accomplished management teams in the wine industry, both by promoting from within, and by actively attracting top industry talent. Together, management and GI grew the company threefold through an array of initiatives, including rolling out an expanded Decoy lineup, which established Decoy as one of the industry’s top luxury wineries. GI Partners also invested more than $60 million in DWC’s future, including expanding the company’s estate holdings by 350 vine acres, building and acquiring state-of-the-art winemaking facilities, and establishing Canvasback, a boutique Cabernet Sauvignon from Washington State’s acclaimed Red Mountain.
As a result of these initiatives and others, over the past decade, DWC has been widely recognized by the wine press for making many of the finest wines in its history. With an array of acclaimed wineries and wines encompassing several top wine regions, varieties and price points, the Duckhorn portfolio is currently the #1 U.S. luxury wine portfolio, and DWC just had its most profitable fiscal year to date.
Alex Ryan, CEO of DWC said, “GI was more than just an owner. They were an ideal partner. GI worked with us on many aspects of our business, from building our portfolio to expanding distribution to a broader base of consumers, all while maintaining the quality that we are known for. GI’s phenomenal team understood and respected our vision and our core values, and they collaborated with us to make Duckhorn Wine Company one of the wine world’s great success stories. We are incredibly grateful for the leadership and stewardship they have provided over the past decade.”
Rick Magnuson, Executive Managing Director of GI Partners said, “We are extremely pleased with the outcome of this investment. Duckhorn is an outstanding company that is extremely well positioned in the market to continue to achieve great success under TSG’s ownership.”
About GI Partners
Founded in 2001, GI Partners is a leading middle market private equity firm based in San Francisco. The firm has raised over $13 billion in capital commitments for private equity and real estate strategies from recognized institutional investors across the globe. For more information on GI Partners and its entire portfolio, please visit www.gipartners.com.
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 www.Duckhorn.com.