Ste. Michelle Wine Estates Acquires A to Z Wineworks
Ste. Michelle Wine Estates said it acquired A to Z Wineworks, a top-selling winery in Oregon. This is the first strategic acquisition for Ste. Michelle Wine Estates under the ownership of private equity firm Sycamore Partners. Terms weren't disclosed.
What It Means: The addition of the A to Z and Rex Hill brands gives Ste. Michelle a substantial presence in Oregon. The combined business will be a leading producer of the state’s signature variety, Pinot Noir.
What They're Saying: “We are delighted to welcome A to Z to the Ste. Michelle family,” said David Dearie, President/CEO. “Erath and A to Z share the same passion for producing high quality wines at fair prices, making A to Z a natural fit for Ste. Michelle. The future of Pacific Northwest wines – both Oregon and Washington – is bright and we’re excited to introduce new consumers across the country and around the world to the full complement of our region’s outstanding wines.”
Amy Prosenjak, President/CEO of A to Z, will join Ste. Michelle as President of Oregon Brands, overseeing the company’s combined operations in the state.
“I’ve long admired Ste. Michelle’s leadership in the Pacific Northwest and their decades-long commitment to promoting the region’s wines,” said Ms. Prosenjak. “Bill Hatcher, who is retiring as Chairman of the Board for A to Z, gave me the great gift of mentorship over the years. With such deep roots, I look forward to joining David and the Ste. Michelle Senior Leadership Team and together raising the bar even higher for Oregon and the Pacific Northwest.”
In addition to Ms. Prosenjak, A to Z Founding Partners Deb Hatcher, Cheryl Francis, and Sam Tannahill will join Ste. Michelle as consultants. A to Z’s Founding Partners started the company 20 years ago and have worked tirelessly to create the highest quality wine for the greatest sustainable value, a goal that remains the company’s guiding principle. In addition to developing into one of Oregon’s most iconic wineries, A to Z became a certified B Corp in 2014 in recognition of its positive environmental practices.
BNP Paribas Securities Corp. served as financial advisor to A to Z. Bank of the West is continuing as the lender to both Ste. Michelle and A to Z. Kirkland & Ellis acted as legal counsel for Ste. Michelle and Tonkon Torp supported A to Z.