| Key Points: – The Duckhorn Portfolio is being acquired by private equity firm Butterfly in an all-cash deal valued at $1.95 billion, offering a 65.3% premium to shareholders. – The acquisition will return Duckhorn to private ownership and includes popular luxury wine brands such as Decoy, Sonoma-Cutrer, Kosta Browne, and Duckhorn Vineyards. – Butterfly, a private equity firm with a focus on the food and beverage industry, aims to accelerate Duckhorn’s growth, adding it to a portfolio that includes companies like QDOBA and Chosen Foods. |
The Duckhorn Portfolio (NYSE: NAPA), a leading luxury wine producer, announced that it has entered into a definitive agreement to be acquired by Butterfly, a private equity firm, in an all-cash transaction valued at $1.95 billion. This acquisition marks a significant milestone for Duckhorn, which will transition from a public to a private company.
Transaction Details and Shareholder Premium
As part of the deal, Duckhorn shareholders will receive $11.10 per share, representing a 65.3% premium over the volume-weighted average stock price for the 90-day period ending on October 4, 2024. Duckhorn originally went public five years ago, and this acquisition will once again return the company to private ownership. The transaction is expected to close this winter, subject to customary regulatory approvals and closing conditions.
Duckhorn’s board will have the right to terminate the agreement if a better proposal from a third party is made during the 45-day “go-shop” period, which expires on November 20, 2024.
Continued Growth for Duckhorn’s Premium Brands
The Duckhorn Portfolio, established in 1976, is recognized as a premier luxury wine producer in the United States, with popular brands like Decoy, Sonoma-Cutrer, Kosta Browne, and Duckhorn Vineyards. The company reported fiscal year sales growth of 0.7%, reaching $406 million through July 2024. With distribution to over 50 countries, Duckhorn has cemented its position as a leader in the high-end wine market.
This transaction is expected to accelerate the company’s growth and expansion under Butterfly’s ownership. Butterfly’s strategy of partnering with leading food and beverage companies aligns with Duckhorn’s ambitions to expand its luxury wine portfolio.
Butterfly’s Expanding Food and Beverage Investments
Butterfly is a private equity firm focused on investments in the “seed-to-fork” food ecosystem across North America. Its diverse portfolio includes companies like Milk Specialties Global, Chosen Foods, MaryRuth Organics, and QDOBA. Butterfly’s goal is to collaborate with category-leading food and beverage businesses and deliver consistent returns for its investors.
This deal also marks the third time Duckhorn has been under private equity ownership. GI Partners initially invested in Duckhorn in 2007, while TSG Consumer Partners took control in 2016 for approximately $600 million before the company filed for an IPO in 2021.