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Duckhorn Acquired By TSG Consumer Partners

August 29, 2016

Weeks after denying rumors that it was set to be acquired by Constellation, Napa’s Duckhorn Wine Company has been snapped up by private equity TSG Consumer Partners, which also backs Pabst Brewing.

The transaction includes all six Duckhorn wineries: Duckhorn Vineyards, Goldeneye, Paraduxx, Migration, Decoy and Canvasback and their corresponding properties, along with more than 600 acres of estate vineyards, including the Three Palms Vineyard in Napa Valley. The price was undisclosed.

Founded by Dan and Margaret Duckhorn in 1976, Duckhorn has been owned by GI Partners since 2007. GI Partners recently made another wine industry investment, acquiring Napa’s Far Niente and Nickel & Nickel, leading to speculation that it might be ready to unload Duckhorn. Rumors that the winery would transition to acquisition-hungry Constellation, however, proved to be unfounded.

In Duckhorn, TSG gets one of the U.S. wine market’s fastest-rising players. Decoy by Duckhorn continues to grow at a rapid pace. The upscale brand ($22.50 a 750-ml. on average) jumped by 22.3% to 406,000 cases in 2015, according to Impact Databank, and it’s on pace to finish the current year as one of the market’s top 50 wine brands by retail sales value. Meanwhile, portfoliomate Duckhorn has also thrived, with its double-digit growth streak continuing in 2015 with an 18.8% rise to 121,000 cases. —Daniel Marsteller and Peter Zwiebach

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