COVER STORY
Deal size up and down
Deal sizes during the past year have told a
divergent tale, having both grown and
shrunk. Deals on the lending side appear to
be moving up, as growing concern about
grape supply has increased interest in acquiring vineyard land, which requires larger
capital commitments at scale than many
other winery investments. Meanwhile, equity
transaction sizes tend to be trending down.
Constellation Brands Inc. and other major
producers have largely filled the gaps in their
portfolios, and the consolidation of bigger
wineries seems to have, at least for the
moment, subsided to allow a lot of financial
and operational digestion to take place.
"Large winery consolidation has slowed,"
Motto says, "and deal size is shrinking."
As deal sizes have shrunk in contrast to the
year before, interest rates have remained consistently low. Low rates existed throughout
the year for high-quality credit, and in fact
rates have fallen more due to compressed
spreads from more aggressive competition.
The Top 20 Finance Companies
Company
No. of Clients
Portfolio Size
Min / Max
Products Offered
Contact
National & International (Big) Banks
Bank of America
Bank of the West
Working capital lines, real estate loans
for vineyards and wineries, equipment
term loans, acquisition finance and
leases.
275+
$900
million+
US Bank
$500,000 /
$100 million
Min:
$1 million
Wells Fargo
$1 billion+
None
David Meddaugh
david.meddaugh@baml.com
(707) 293-2553
or Tom McComas
thomas.mccomas@baml.com
(707) 293-2552
Working capital, real estate loans, vineyard Adam Beak
adam.beak@bankofthewest.com
development, acquisition financing,
(707) 501-5136
equipment loans and leases, foreign
exchange, global capabilities in all major
wine regions with BNP Paribas and BNL.
Working capital, term debt, crop loans,
acquisition and equipment financing.
John Flinn (916) 498-3841
or Mike Edwards (916) 626-9606
Perry DeLuca
Real estate loans, lines of credit,
perry.f.deluca@wellsfargo.com
insurance, asset-based lending,
(415) 222-4646
equipment financing, barrel leasing,
private banking and treasury management.
Large Regional & Specialty Banks
Comerica
First Republic
Rabobank
$500
million
125+
Michael A. Silva
masilva@comerica.com
(415) 477-3275
or Chris Thomson, cthomson@
comerica.com (916) 491-1304
Max:
$40 million
Acquisition and development loans,
working capital, equipment loans.
Dan Smith
dansmith@firstrepublic.com
(707) 967-1502
Working capital, revolving lines of credit,
equipment loans and leases, real estate.
Charles Day
(707) 545-6887
120
$1.1 billion
400+
$900
million+
$1 million /
$50 million
Inventory, equipment, real estate,
construction, vineyard development
loans.
William A. Stevens
wstevens@svb.com
(707) 967-1373
or Rob McMillan, rmcmillan@svb.
com (707) 967-1367
Umpqua Bank
75
$200
million
$1 million /
$25 million
AR financing, revolving credit lines,
equipment leases and loans, real estate
term loans, vineyard development loans.
Mark Brody
markbrody@umpquabank.com
(707) 252-5020
Union Bank
25
$376
million
$1 million /
$60 million
Revolving credit lines, term debt,
development and acquisition finance.
James Barrett
james.barrett@unionbank.com
(707) 968-9514
Silicon Valley
Bank (SVB)
Wine Division
30 W in e s & V i ne s s e pt e mbe r 20 13
