Duckhorn will use existing revolver for cash-stock vineyard purchase

Chicago, Nov. 16 – Duckhorn Portfolio, Inc. will use stock and cash for a $400 million acquisition of Sonoma-Cutrer Vineyards from Brown-Forman Corp., according to a press release.

The majority of the acquisition price will be covered by 31.5 million shares of the company’s common stock, valued at approximately $350 million.

Brown-Forman will also receive $50 million in cash for the vineyards, subject to certain adjustments.

The cash purchase price will be financed with borrowings under Duckhorn’s existing revolver.

As of closing, net leverage is expected to remain unchanged, excluding synergies.

Nomura Securities International, Inc. is acting as the company’s financial adviser, and Ropes & Gray LLP is acting as the company’s legal adviser.

Brown-Forman’s financial adviser is Greenhill & Co., LLC and its legal adviser is Gibson, Dunn & Crutcher LLP.

Duckhorn has 10 wineries and is based in St. Helena, Calif.

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