HEALDSBURG, Calif.,
Aug. 13, 2018 /PRNewswire/
-- Truett-Hurst, Inc. (NASDAQ: THST) announced today that it
sold its wholesale wine business to Precept Brands LLC ("Precept").
Truett-Hurst's wholesale wine business consists of the
Company's wholesale bottled wine inventory, brands, supplies and
bulk wine inventory used for the Company's "control label" wine
brands and related intellectual property. These wholesale brands
are produced under a variety of labels and sold primarily to
national retail chains. The Company will retain its Direct to
Consumer business and Dry Creek Valley Estate in Healdsburg, California.
Precept has acquired from the Company all the assets comprising
its wholesale wine business for approximately $18,000,000 in cash, subject to post-closing
adjustments, and ongoing royalty payments relating to certain of
the acquired wholesale wine brands pursuant to a Royalty Payment
Agreement. The transaction is expected to result in proceeds of
approximately $15.9 million for the
Company, net of taxes and transaction-related expenses and fees. In
addition, the Company will continue to provide certain services to
Precept relating to the wholesale wine business through the current
harvest period under a Transition Services Agreement.
As of the closing, and after payment of bank debt and certain
transaction expenses, the Company expects to have approximately
$5.6 million of cash. Following
the completion of the Precept transaction and repayment of all
outstanding debt obligations, Truett-Hurst, Inc. will retain
unencumbered ownership of the 22.6-acre Truett-Hurst vineyard
(including 13.5 planted acres) and the tasting rooms in
Healdsburg, California.
The sale of the Company's wholesale wine business will allow the
Company to focus all of its resources on its principal core brands
of "Truett Hurst" and "VML" which
are primarily sold at the Truett Hurst Winery in Healdsburg, to Wine Club members via direct
shipments and to select retailers around the country. The Company
expects to use the proceeds from the sale of the wholesale wine
business to eliminate indebtedness and to invest in its direct to
consumer business. The Company will also consider using a
portion of the purchase price to provide returns to the Company's
public stockholders.
The Company is also pleased to announce that Paul Dolan will serve as the Company's interim
Chief Executive Officer effective November
1, 2018. Phillip Hurst,
the Company's current Chief Executive Officer, has accepted the
position of Chief Innovation Officer with Precept Brands as of
November 1, 2018. Mr. Hurst
will remain a board member of the Company.
"I am very excited to jump back into the management of the
Truett-Hurst Family Winery. Over the last 10 years our
hospitality team has done an amazing job building relationships
with the community and our club members and we are looking forward
to expanding and enhancing our great service. As a winegrower I
have a particular warm spot in my heart for vines that have unique
flavors, power and finesse and together with our phenomenal
winemakers Ginny Lambrix of VML and
Ross Reedy of Truett Hurst we can't wait to dive into the 2018
harvest," said Mr. Dolan.
About Truett-Hurst, Inc.
Truett-Hurst, Inc. (NASDAQ: THST) is a holding company and its
sole asset is the controlling equity interest in H.D.D. LLC, an
innovative super-premium, ultra-premium and luxury wine sales,
marketing and production company based in the acclaimed Dry Creek
Valley of Sonoma County,
California. Truett-Hurst, Inc. is headquartered in
Healdsburg, California.
Forward-Looking Statements
This press release contains forward-looking statements as that
term is defined in the Private Securities Litigation Reform Act of
1995. These forward-looking statements include statements regarding
planned investments in our business and expectations for 2018. Such
forward-looking statements are subject to risks and uncertainties,
including those described in the Company's filings with the
Securities and Exchange Commission ("SEC") that could cause actual
results to differ materially from those reflected in the
forward-looking statements. Factors that might contribute to such
differences include, among others, economic downturns and the
general state of the economy, including the financial markets and
mergers and acquisitions environment; our ability to drive revenue,
and increase or retain current subscription revenue, particularly
in light of the investments in our expanded news operations; our
ability to develop new products; competition and other factors set
forth in our filings with the SEC, which are available on the SEC's
website at www.sec.gov. All forward-looking statements contained
herein are made as of the date of this press release. Although the
Company believes that the expectations reflected in the
forward-looking statements are reasonable, the Company cannot
guarantee future results or occurrences. The Company disclaims any
obligation to update these forward-looking statements, whether as a
result of new information, future developments or otherwise.
Truett-Hurst, Inc.
tel: 707.431.4423
fax: 707.395.0289
email: ir@truetthurstinc.com
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SOURCE Truett-Hurst, Inc.