The Duckhorn Portfolio announced their $400 million acquisition of Sonoma-Cutrer Vineyards from Brown-Forman Corporation on the 16th of November 2023.
Acquired in 1999 by Brown-Forman, Sonoma Cutrer has earned its reputation as one of California’s largest and best-known luxury Chardonnay brands. The acquisition is expected to unlock significant synergies for The Duckhorn Portfolio and add to its extensive portfolio of luxury wine brands.
Brown-Forman is to be paid in a combination of company stock and cash, with an upfront cost of $50 million USD, plus 31.5 million shares of the company’s common stock, approximate to a 21.5% ownership stake in The Duckhorn Portfolio.
The acquisition is expected to enhance The Duckhorn Portfolio’s market position as a leading luxury wine corporation by accelerating growth, improving operating margins, and gaining a larger market presence in the luxury Chardonnay category.
Read our report on the acquisition, which includes company profiles, market data, management commentary and strategic rationale.
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