Houlihan Lokey Advises Duckhorn Wine Company

Houlihan Lokey's Consumer, Food & Retail Group is pleased to announce that Duckhorn Wine Company (DWC), a portfolio company of TSG Consumer Partners, has acquired KB Wines Corp. (dba Kosta Browne Winery) from J.W. Childs Associates. The transaction closed on August 1, 2018.

Founded in 1997, Kosta Browne is recognized as one of the wine industry's great success stories, making some of the New World's most sought-after Pinot Noirs. The Kosta Browne sale includes the company, the winery, all assets and inventory, as well as 170 acres of vineyards through ownership or long-term leases that include Cerise Vineyard in the Anderson Valley and prized sections of Keefer Ranch Vineyard in the Russian River Valley and Gap's Crown Vineyard on the Sonoma Coast.

"We have long admired Kosta Browne and its outstanding track record of producing exceptional Pinot Noirs," said Dan Costello, Managing Director at TSG. "Kosta Browne is a remarkable business, and its commitment to quality makes it a natural fit for DWC's highly regarded portfolio of brands."

"Building out our esteemed Pinot Noir and Chardonnay collection with the addition of Kosta Browne will further enhance our visibility and reach among all wine drinkers," said Alex Ryan, President and CEO of DWC. "We thank TSG for its ongoing partnership across all aspects of our business, including its insightful counsel and support on this transaction."

"DWC's acquisition of Kosta Browne comes at an exciting time in the premium beverage sector," said TSG President Jamie O'Hara. "We have been looking to expand our presence in this dynamic space, as evidenced by our recent investments in BrewDog and Nuun, adding to our existing portfolio, which includes DWC, Pabst, and SweetWater. We believe Kosta Browne is the perfect partner for DWC and an ideal fit with our investment strategy."

TSG Consumer Partners is a leading private equity firm focused exclusively on the branded consumer sector. Since its founding in 1987, TSG has been an active investor in the food, beverage, restaurant, beauty, personal care, household, apparel & accessories, and e-commerce sectors. Representative past and present partner companies include Duckhorn Wine Company, Planet Fitness, IT Cosmetics, REVOLVE, HUDA Beauty, BrewDog, Canyon Bicycles, Pabst, Backcountry, vitaminwater, thinkThin, popchips, Stumptown, Smashbox Cosmetics, and e.l.f. Cosmetics.

Duckhorn Wine Company has helped set the standard for American fine wine for four decades. Founded by Dan and Margaret Duckhorn with the launch of Duckhorn Vineyards in 1976, the Duckhorn portfolio has evolved to include Goldeneye, Paraduxx, Migration, Decoy, Canvasback, and Calera, each with its own dedicated winemaker. With 700 acres of acclaimed estate vineyards, along with grapes from the finest growers, each winery has its own focused winegrowing program. DWC wines are available throughout the United States, on five continents, and in over 50 countries.

Located in Sebastopol, Sonoma County, Kosta Browne is a trusted authority on California Pinot Noir and Chardonnay. They produce appellation and single-vineyard wines from the most coveted cool-climate vineyards across the Russian River Valley, Sonoma Coast, Anderson Valley, Sta. Rita Hills, and Santa Lucia Highlands appellations. A commitment to quality, stewardship of the land, and customer relationships has made Kosta Browne an industry-leading producer of inspiring wines that transcend their origins and represent California on a global stage.

Houlihan Lokey served as the exclusive financial advisor to DWC and TSG and assisted in structuring and negotiating the transaction on DWC's behalf. This deal represents another landmark transaction for Houlihan Lokey in the wine industry.