Duckhorn Portfolio Completes Acquisition of Sonoma-Cutrer Vineyards



Two new members added to the board of directors

British stone. HELENA, Calif.–(BUSINESS WIRE)–The Duckhorn Portfolio, Inc. (NYSE: NAPA) (the Company) announces the completion of its acquisition of Sonoma-Cutrer Vineyards (Sonoma-Cutrer), effective April 30, 2024 Valid is one of the largest and fastest-growing luxury Chardonnay brands in the United States from spirits and wine company Brown-Forman Corporation (NYSE: BF.B) (Brown-Forman). Duckhorn Portfolio has appointed two Brown-Forman executives to its board of directors: Marshall Farrer, chief strategic growth officer, and Tim Nall, chief global supply chain and technology officer.

The Company completed the previously announced acquisition for approximately $50 million in cash and the issuance of 31,531,532 shares of the Company's common stock to Brown-Forman.

“We are excited to add the acclaimed Sonoma-Cutrer winery brand to our portfolio of luxury winery brands and welcome their talent,” said Deirdre Mahlan, President, CEO and Chairman of Duckhorn Portfolio. Overflowing team. Adding these carefully crafted, iconic wines to our offerings expands our presence in the luxury Chardonnay category and further solidifies our position as America's premier pure-play producer of luxury wines. We believe this acquisition will enhance our ability to offer consumers a full portfolio of luxury wine products and further our ambition to drive continued profitable growth and create meaningful value for all stakeholders.

Since its founding in 1973, Sonoma-Cutrer has become one of California's best-known and fastest-growing luxury Chardonnay brands. The acquisition strengthens the Duckhorn product portfolio by significantly increasing the company's position in the Chardonnay category, the number one white grape variety in the country. The acquisition's brand strength and scale are expected to expand the company's reach to a broader base of consumers and trading partners, further positioning The Duckhorn Portfolio to grow beyond the industry.

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The main advantage

  • The acquisition is expected to be accretive in the first full fiscal year based on expected run-rate synergies and is currently expected to exceed the company's original estimate of $5 million.
  • The company expects to have additional opportunities to accelerate net sales growth due to Sonoma-Cutrer's complementary position within the existing brand and category portfolio and relatively limited customer overlap.
  • The company expects to add 1,121 acres of estate vineyards in the Russian River Valley and Sonoma Coast production areas to further optimize grape supply and production models.
  • The company welcomes Brown-Forman, a beverage alcohol industry leader with more than 150 years of industry experience, as a respected shareholder and looks forward to the contributions of Marshall Farrer and Tim Nall as members of The Duckhorn Portfolio's Board of Directors.
  • The terms of the acquisition enable the company to maintain current debt leverage, providing financial flexibility to drive future growth.

About Marshall Farrell

Marshall Farrer is Brown-Forman's executive vice president and chief strategic growth officer. Marshall began his career with Brown-Forman in 1998 as Marketing Manager for the California Wine Division and has held various sales and marketing management positions. In 2004, he was named vice president and chief of staff to the president of Brown-Forman's Spirits Americas. In 2006, he was appointed Regional Director for Latin America and the Caribbean. In 2010, he moved to Sydney, Australia, and was appointed Managing Director, Australia, New Zealand and South Pacific. In 2014, he transitioned into marketing as managing director of Jack Daniel's Tennessee Honey, leading its global expansion. Shortly afterwards in 2015, he was promoted to senior vice president, managing director of global travel retail, and in 2018 he added responsibilities for developed regions in Asia Pacific, including North Asia, Australia and New Zealand. In 2020, Marshall was named president of Europe and joined the executive leadership team. In addition, he became Brown-Forman's first chief strategic growth officer in 2023, transitioning to a full-time position in early 2024. He graduated from Rollins College (NYSE: ) with a Bachelor of Arts degree and holds an MBA from Tulane University.

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About Tim Nall

Tim Nall is Brown-Forman's executive vice president, chief global supply chain and technology officer. Since 2000, he has served in a growing number of positions within the Brown-Forman global production team, including director of campus production operations, vice president and general manager of Brown-Forman Wine Company, vice president, director of technical services and most recently senior vice president. President President, Chief Information and Advanced Analytics Officer.Prior to joining Brown-Forman, he was employed by Alcoa (NYSE: ), American Air Filters Inc. and SSTI, a Ford Motor Co. (NYSE: ) Company/Johnson Controls joint venture. He holds a Bachelor of Science degree in Electrical Engineering from the University of Louisville's J.B. Speed ​​School of Engineering. He later earned an MBA from the University of Louisville with a concentration in operations management.

About the Duckhorn Portfolio

Duckhorn Portfolio is North America's premier luxury wine company, with 11 wineries, 10 state-of-the-art winemaking facilities, 8 tasting rooms and more than 2,200 acres of vineyards on 38 estates. Our winery was founded in 1976 when vintners Dan and Margaret Duckhorn founded Duckhorn Vineyards in Napa Valley, and today our portfolio includes some of the most respected wineries in North America, including Duckhorn Vineyards, Decoy, Sonoma -Cutrer, Kosta Browne, Goldeneye, Paraduxx, Calera, Migration, Postmark, Canvas Back and Greenwing. We source grapes from our own estate vineyards and outstanding growers in Napa Valley, Sonoma County, Anderson Valley, Northern California and the Central Coast, Oregon and Washington to offer a comprehensive selection of carefully curated, critically acclaimed luxury wines The product portfolio, with prices ranging from US$20 to US$230, covers more than 15 varieties and 39 origins. Our wines are sold throughout the United States, on five continents and in more than 50 countries around the world.

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forward-looking statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify this through words such as approximately, expect, assume, believe, consider, continue, could, estimate, expect, future, intend, may, plan, potential, predict, project, seek, should Forward-Looking Statements. These forward-looking statements include, among other things, information about potential market opportunities arising from the acquisition of Sonoma-Cutler and related business strategies, the Company's ability to better address certain markets, the expansion of its capabilities and position in the industry and the expansion of its A statement of business capabilities. All of our forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those we anticipate, including: risks associated with the transaction generally; failure to complete for other reasons or delays in completing the transaction; the risk that the conditions to completion of the transaction may not be satisfied; the occurrence of any events, changes or other circumstances that may result in the termination of the merger agreement; the outcome of any legal proceedings that may be instituted following the announcement of the transaction; the failure to retain Sonoma- Cutler's key management personnel and employees; problems or delays in the successful integration of Sonoma-Cutrer's operations with the Company's operations, including incurring or experiencing unexpected costs and/or delays or difficulties; concerns about the transaction by customers, competitors, suppliers and employees adverse reactions; the unpredictability and severity of catastrophic events, including but not limited to terrorism, war or hostilities, and management's response to any of the foregoing factors; and other factors discussed in the Company's filings with the SEC.

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The forward-looking statements contained in this press release are based on management's current plans, estimates and expectations based on information currently available to the Company and may be affected by uncertainties and changes in circumstances. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. Actual results may differ materially from these expectations due to changes in global, regional or local political, economic, business, competitive, market, regulatory and other factors (many of which are beyond our control) and other factors described in Item 1A Differences, risk factors in the Company's 2023 10-K Report filed with the SEC on September 27, 2023, the Company's 10-Q Report for the Quarter ended January 31, 2024 filed with the SEC on March 7, 2024, and the Company's Additional documents may be filed with the SEC from time to time. If one or more of these risks or uncertainties materialize, or if any of our assumptions prove incorrect, our actual results may differ in material respects from those expressed or implied by these forward-looking statements. There is a difference. Any forward-looking statements made by the Company speak only as of the date on which they are made. All future written and oral forward-looking statements made by the Company or persons acting on its behalf are expressly qualified by prior statements. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable securities laws.

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Investor Contact
Ben Avinia-Tapper
IR@dakhorn.com
(707) 339-9232

Media Contact
Jessica Liddell, ICR
DuckhornPR@icrinc.com
(203)682-8200

Source: Duckhorn Portfolio, Inc.





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