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11/2017

COLGIN CELLARS acquired by LVMH

UNITED STATES Agriculture / Permanent Crops & Tree Groves / Vineyards EV 100M - 350M USD

Context

LVMH acquired a 60% controlling majority stake in Colgin Cellars from Ann Colgin and Joe Wender in a highly strategic, friendly transaction. The deal was structured via a definitive private share purchase agreement negotiated directly by LVMH Chairman Bernard Arnault and executed on-site by Anish Melwani, CEO of LVMH Inc. (North America). The transaction immediately integrated Colgin Cellars into Moët Hennessy's international Estates & Wines network, keeping the existing technical team under winemaker Allison Tauziet and consultant Alain Raynaud intact. This acquisition successfully granted LVMH a crown jewel asset in the Napa Valley to complement its white-wine-focused Newton Vineyard, allowing the conglomerate to leverage its global institutional marketing engine to scale Colgin’s distribution across underpenetrated European and ultra-selective international fine dining corridors.

COLGIN CELLARS, which reported an EBITDA margin of LOGIN in 2017, is valued in this transaction at an EV/EBITDA multiple of LOGIN, a level to compare with the average currently observed in the AgriFood sector (10.3x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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Target

Colgin Cellars is an ultra-premium, critically acclaimed winery located in Saint Helena, within California’s world-renowned Napa Valley. Founded in 1992 by Ann Colgin, an art world professional turned viticulturalist, the estate rapidly achieved "Cult Wine" status—a rare distinction shared only with a handful of legendary regional peers like Harlan Estate and Screaming Eagle. Its business model relies on a terroir-driven, single-plot approach deeply inspired by Burgundy, emphasizing individual volcanic hillside parcels over mass regional blending. The company's commercial framework is rooted in extreme product scarcity and brand desirability, producing fewer than 50,000 bottles annually across four flagship cuvées, with prices ranging from $250 for its Syrah to over $450–$600 for its iconic Cabernet Sauvignon blends. The brand famously circumvents traditional retail channels, distributing over 70% of its volume directly to an elite allocation club of 8,000 members, which is backed by a multi-year waiting list. Strategically, the firm represents an exceptional high-equity asset, holding twelve perfect 100-point scores from critic Robert Parker, who famously described the estate’s IX Estate parcel as "the closest thing to viticultural nirvana".

Ent. Value

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Multiples

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EV / EBITDA

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Historical Financials (USD)

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REFERENCES

Valuation range: EV 100M - 350M USD

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Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).

Press release: view release

Target: colgin cellars

Acquirer: lvmh