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Truett-Hurst Shares Jump On $18M Sale Of Wine Business

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Truett-Hurst Shares Jump On $18M Sale Of Wine Business
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Shares of wine and marketing company, Truett-Hurst Inc (NASDAQ: THST) were rallying more than 70 percent Tuesday after a deal announcement

What Happened

Truett-Hurst said it's selling its wholesale wine business to Precept Brands LLC for $18 million cash, netting Truett-Hurst an estimated $15.9 million after taxes, expenses and fees. 

The wholesale business includes bottled wine inventory, brands, supplies, bulk wine inventory and related intellectual property.

Why It’s Important

The sale gives Truett-Hurst the opportunity to focus on its core brands, the company said in a press release. 

“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." 

What’s Next

Truett-Hurt also announced the appointment of Paul Dolan as interim CEO beginning Nov. 1; current CEO Phillip Hurst  is joining Precept Brands’ team as chief innovation officer.

"I am very excited to jump back into the management of the Truett-Hurst Family Winery," Dolan said in a statement.

“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." 

Related Links:

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Posted-In: Precept BrandsNews M&A General Best of Benzinga

 

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