News

Ste. Michelle Wine Estates acquires A to Z Wineworks

12 September 2022 By Louis Thomas

Ste. Michelle Wine Estates has completed its first acquisition under new owners Sycamore Partners, adding Oregon’s A to Z and Rex Hill brands to its portfolio.

The largest winery in the Pacific Northwest, Ste. Michelle now oversees more than 12,000 hectares of vineyards across Washington, California and Oregon. Before the acquisition of A to Z (based in Willamette Valley), Ste. Michelle also had Oregon’s Erath Winery (based in Dundee Hills) in its roster of brands. Both Erath and A to Z are known for the production of Pinot Noir, and the latter qualified as a B Corp in 2014, becoming the world’s first winery to receive the certification.

The full terms of the transaction have not been disclosed, but the financing of it was led by Bank of the West, part of the BNP Paribas Group. Adam Beak, Bank of the West head of beverage vertical, said: “We’ve provided both financing and strategic guidance to A to Z Wineworks for over 15 years. It was particularly gratifying to facilitate the acquisition to another Bank of the West client. This deal is the result of a long and successful relationship.”

The deal also means that A to Z’s president and CEO, Amy Prosenjak, will join Ste. Michelle as president of Oregon brands. She said that she had “long admired” the company. In addition to Prosenjak, A to Z’s founding partners, Deb Hatcher, Cheryl Francis and Sam Tannahill, will join Ste. Michelle as consultants.

In response to the news, Tannahill said: “Ste. Michelle has always taken a long-term view regarding grape-growing and winemaking, including their commitment to sustainability and their support for viticulture and enology research.”

David Dearie, Ste. Michelle president and CEO, toasted the addition of A to Z: 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.”

A to Z is already Oregon’s top-selling brand. As Ste. Michelle distributes its wines in over 100 countries, the deal marks a significant moment in the growth of Pacific Northwest wines on international markets. Earlier this year, Jackson Family Wines completed the purchase of a Walla Walla Valley vineyard, its first in Washington.