Terraphase was engaged by a global, consumer-focused private equity client in 2016 to conduct environmental due diligence for its acquisition of the Duckhorn Wine Company (Duckhorn) with over 1,200 acres of owned and leased vineyard properties and wineries located in California’s Napa Valley, Russian River, Alexander Valley, Anderson Valley and Mendocino regions and in Washington State’s Red Mountain appellation.  The goal was to help identify potential environmental liabilities associated with the properties, which spans thousands of acres of agricultural land that has been in use since the early to mid-1900s.

Scope of Services

Terraphase performed Phase I Environmental Site Assessments (ESAs) in accordance with ASTM E1527-13 and E1527-21 standards, as well as Limited Environmental Compliance Reviews (LECRs). The assessments included both standard and “non-scope” considerations, such as evaluating the potential presence of lead-based paint, asbestos-containing materials, radon, methane, and mold. Each site investigation included historical and regulatory document review, interviews with current and previous owners and knowledgeable representatives, and on-site reconnaissance. The LECRs evaluated overall compliance with relevant federal and state environmental regulations.

Terraphase was subsequently engaged by the private equity owner to support post-closing activities and to continue in an environmental advisory role to Duckhorn. During this period, Terraphase advised and performed environmental due diligence to support Duckhorn’s land, vineyard, and winery expansions and acquisitions, and consulted on environmental compliance, regulatory permitting, and water supply and wastewater management. Terraphase continued its role as Environmental Advisor in the leadup to The Duckhorn Portfolio 2021 listing on the New York Stock Exchange and 2024 private equity purchase.

Notable Accomplishments

• With a compressed schedule under a short diligence period, Terraphase deployed teams of Environmental Professionals across multiple sites to perform the site reconnaissance and compliance inspections to support a time-critical acquisition transaction.