Precept Wine, LLC acquired wholesale wine business from Truett-Hurst, Inc. for $18.3 million.
August 12, 2018
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Precept Wine, LLC acquired wholesale wine business from Truett-Hurst, Inc. (NasdaqCM:THST) for $18.3 million on August 13, 2018. Precept Wine acquired all the assets comprising the wholesale wine business in cash and the consideration is subject to post-closing adjustments and ongoing royalty payments relating to certain of the acquired wholesale wine brands pursuant to a Royalty Payment Agreement. Truett-Hurst will retain its Direct to Consumer business and Dry Creek Valley Estate in Healdsburg, California. Truett-Hurst will continue to provide certain services to Precept Wine relating to the wholesale wine business through the current harvest period under a Transition Services Agreement. Phillip Hurst, Truett-Hurst's current Chief Executive Officer, has accepted the position of Chief Innovation Officer with Precept Brands as of November 1, 2018. Phillip Hurst Hurst will remain a board member of Truett-Hurst. Truett-Hurst expects to use the proceeds from the sale to eliminate indebtedness and to invest in its direct to consumer business. Truett-Hurst will also consider using a portion to provide returns to its public stockholders. David Makarechian, Esq. of O’Melveny & Myers LLP acted as legal advisor to Truett-Hurst, Inc. Tim Hogan of Fox Rothschild LLP acted as legal advisor to Precept Wine, LLC.
Precept Wine, LLC completed the acquisition of wholesale wine business from Truett-Hurst, Inc. (NasdaqCM:THST) on August 13, 2018.
Truett-Hurst, Inc. is a holding company for H.D.D. LLC (the LLC). The Company is a producer of luxury wines and operates two wine tasting rooms and leases a winery where wine is produced from many varieties of grapes principally grown or purchased in Sonoma Countyâs Dry Creek Valley and Russian River Valley appellations. The Company has a space for wine production within a custom crush facility located in Santa Rosa, California. The Company operates its direct to consumer (the DTC) business in Healdsburg, California. The DTC channel consists of sales of products produced by the Company through its own tasting rooms, wine clubs and websites. Its wine portfolio offers a range of single vineyards and blends.