Truett-Hurst Lowers IPO RangeApril 23, 2013
Sonoma winemaker Truett-Hurst has revised the terms of its proposed initial public offering, lowering the price range of the 2.25 million Class A common stock shares on offer to $8.50 to $10.50, from an earlier range of $11 to $15. The new offer could see the wine group raise up to $23.6 million. The company says it will use net proceeds from the IPO to pay down amounts owed under its credit facility, for working capital, capital expenditures, hiring additional personnel and for general corporate purposes.
A fast-growing private-label wine producer that supplies prominent retail chains like Trader Joe’s, Safeway and Total Wine & More—which together account for around 85% of its gross wholesale revenues—Truett-Hurst saw net sales more than double to $12.7 million in its last fiscal year, ended this past June. The company also markets wines under the Truett-Hurst, VML, Healdsburg Ranches and Bradford Mountain brands.
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