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Which bank is making winery sales its modus operandi?

11 October 2024 By Sarah Neish

A top bank has turned its focus towards becoming the ultimate “finance source” for winery acquisitions. And no, it’s not SVB…

One of Canada’s top banking establishments has struck up a partnership with a Californian-based merger-and-acquisition firm which has advised the likes of Constellation Brands and E. & J. Gallo on their winery and vineyard acquisitions.

The new partnership will give the bank access to high-profile wine clients, as it strives to become the go-to financer for winery acquisitions.

The Bank of Montreal (BMO) will work with Zepponi to strike up deals, with BMO fine tuning its “wealth management” services to cater to premium winemakers.

“We are even more focused on being the finance source and the advisory source for wine transactions, for wineries buying and selling each other,” said Adam Beak, who leads BMO’s wine and spirits group in Napa.

Beak revealed that BMO is hiring and expanding its team in order to better equip itself for its new modus operandi.

BMO’s renewed focus comes following its own US$16 billion acquisition of Bank of the West, which Beak said had opened up new opportunities.

“We had kind of reached the ceiling with what we could do at Bank of the West. And this (acquisition) has just really opened up opportunities,” he revealed.

Busy year

2024 has proven a busy year for buying and selling wine businesses.

Earlier this month, db reported that The Duckhorn Portfolio is being acquired by Butterfly Equity in a deal said to be worth US$1.95 billion. Following the completion of the transaction, Duckhorn will become a privately held company, with Duckhorn CEO Deirdre Mahlan calling it “excellent news” for the company’s shareholders who “will receive a substantial premium.”

Other big acquisitions in the wine world this year include Domaines Barons de Rothschild (Lafite) buying William Fèvre in January 2024 for an estimated US$99 million, and Australian Wine Holdco Limited (owner of Accolade Wines) acquiring Pernod Ricard’s wine arm, including its Jacob’s Creek, Orlando, St Hugo, Stoneleigh, Brancott Estate, Church Road, Campo Viejo and Ysios brands, among others. The Pernod Ricard sale was confirmed in July.

Treasury Wine Estates (TWE) announced in August 2024 its plans to sell off some of its cheaper labels, including Wolf Blass and Blossom Hill, while Marchesi Antinori, one of Italy’s oldest family-owned fine wine producers, acquired Washington State’s Col Solare from Ste Michelle Wine Estate in June.

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