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O’Melveny Advises WX Brands in Investment by Terold

August 05, 2021

FOR IMMEDIATE RELEASE

SILICON VALLEY—August 4, 2021—O’Melveny advised leading global wine company WX Brands in its purchase by Terold, a company owned by members of the Bemberg Family Group. The investment was announced August 2.

Located in Novato, California, WX Brands offers a unique portfolio of wine brands that are sold both domestically and globally. WX also develops exclusive wine brands for retailers around the world. Wine Business Monthly has named WX Brands #14 among the Top 50 U.S. wine companies.

Terold is a sixth-generation family business rooted in South America. The company has deep experience in the beverage industry and has a long, successful history of growing businesses through strategic partnerships. Along with interests in Argentina, Chile, Uruguay, and Paraguay, the company also owns California vineyards in Napa Valley and Lodi.

O’Melveny has represented WX Brands since 2000. The O’Melveny team advising WX on the Terold investment was led by partner and Silicon Valley Office Head Paul Sieben and included Silicon Valley counsel Tim Hagen and San Francisco associate Lauren Stamey, among others.

About O’Melveny

It’s more than what you do: it’s how you do it. Across sectors and borders, in board rooms and courtrooms, we measure our success by yours. And in our interactions, we commit to making your O’Melveny experience as satisfying as the outcomes we help you achieve. Our greatest accomplishment is ensuring that you never have to choose between premier lawyering and exceptional service. So, tell us. What do you want to achieve? Visit us at www.omm.com or learn more in our firm at-a-glance, annual report, and on LinkedIn, Twitter, Facebook, Instagram, and YouTube. Visit The Boardroom for our insights on pressing issues facing global corporations.

Contact:

Brandon Jacobsen
O’Melveny & Myers LLP
+1 213 430 8024
bjacobsen@omm.com

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WX Brands and Terold issued the following release:

Terold Purchases Majority State in WX Brands

Novato, CA—August 2, 2021—Novato-based WX Brands, a leading global wine company, and Terold, a company owned by members of the Bemberg Family Group, have announced that Terold has purchased a majority stake in WX Brands effective July 30, 2021.

“WX Brands has built a strong business based on sound brand investments, a clean balance sheet, robust distribution, and a keen understanding of the wine consumer,” said Diego Herrera Sainz de Vicuña, member of the Board of Directors of Terold. “This investment is the result of several years of work on international expansion. WX Brands is an excellent complement to our current wine industry portfolio. We are convinced that both the Bemberg Family Group and WX Brands will benefit greatly.”

Terold, a sixth-generation family business, has a long successful history of growing businesses through strategic partnerships, and deep experience in the beverage industry. In 2010, Terold acquired Grupo Peñaflor, the leading winery in Argentina. In 2016, Grupo Peñaflor acquired Diageo’s wine operations in Argentina and entered a distribution and production agreement for Diageo’s spirits products in Argentina, Chile, Uruguay, and Paraguay. Today, Grupo Peñaflor has a strong position in key segments of the Argentine market and accounts for 27% of Argentine wine exports. The group also owns vineyards in Napa Valley and Lodi.

“We have known and respected the Bemberg Family Group and Grupo Peñaflor for two decades. This partnership is an enormous vote of confidence for the WX Brands team and one that will accelerate the growth and success of both businesses,” stated WX Brands President and CEO Peter Byck. “Both groups have realized we share similar values: a long-term business perspective, a people-first approach, and family ownership. We both believe by working together, we are positioned for stronger growth and greater success.”

WX Brands and the other wine assets of Terold will continue to operate as separate companies and the WX Brands’ management team, led by Peter Byck, will continue in their present roles. The financial terms of the deal are not disclosed.

O'Melveny & Myers LLP provided legal counsel to WX Brands and Credit Suisse represented WX Brands as financial advisor. Winston & Strawn served as legal advisor and Rabobank served as financial advisor to Terold.

About WX Brands

WX Brands was founded in 1999 and offers a unique portfolio of wine brands that are sold both domestically and globally. WX Brands also develops exclusive wine brands for retailers around the world. WX Brands’ wines are sourced from 14 countries and sold in 20 countries resulting in over 4 million cases sold annually worldwide. In February 2021, Wine Business Monthly named WX Brands #14 among the Top 50 U.S. wine companies.

About Terold

Founded in 1888 by Otto Bemberg, Quilmes (Quinsa, Quilmes International) became the largest brewery conglomerate in the South American region including Argentina, Chile, Uruguay, and Paraguay. The Bemberg Family Group controlled this asset for almost 120 years, which it sold to AB InBev in 2006 after a 50/50 joint venture. Strategic partnerships represent a key aspect to the company’s growth and development. During the last three decades, world class players have partnered with the Bemberg Family Group in the beverage sector including Heineken, AB InBev, Coca-Cola, PepsiCo, and Nestle.