Wine Maker Duckhorn to be Acquired by Butterfly Equity for $1.95 Billion

Premier luxury winemaker Duckhorn Portfolio (NAPA) announced on October 7, 2024, that it entered into a merger agreement to be taken private by Butterfly Equity in an all-cash deal valued at $1.95 billion.

Deal Structure:

As per the announced terms, Duckhorn stockholders will receive $11.10 per share in cash, representing a 105.56% premium from the stock’s last close.

Company Profile:

The Duckhorn Portfolio, based in St. Helena, California, was founded in 1976 and offers a curated selection of premium brands, including Duckhorn Vineyards, Decoy, Sonoma-Cutrer, and Kosta Browne.

Butterfly Equity is a Los Angeles-based private equity firm specializing in investments within the food sector, focusing on the “seed-to-fork” ecosystem. Since its founding in 2016, it has built a diverse portfolio that includes brands such as Milk Specialties Global, Chosen Foods, MaryRuth Organics, Orgain, Bolthouse Fresh Foods, and QDOBA, leveraging deep sector expertise and a data-driven, operations-focused approach to generate consistent investment returns.

Deal Details and Timeline:

Duckhorn’s board has the right to cancel the agreement and accept a better offer from third parties during the 45-day “go-shop” period, which ends on November 20.

Duckhorn’s current EV/Sales (TTM) ratio is 2.78, above the sector median of 1.80.

After the transaction is completed, expected this winter, the company will remain headquartered in St. Helena, California, and will continue to operate its eleven winery brands under The Duckhorn Portfolio name.

“(Butterfly Equity) looks forward to bringing our specialized expertise and deep food and beverage network to bear to help amplify and accelerate Duckhorn Portfolio’s mission to have their wine poured wherever fine wines are served throughout North America and the world,” said Adam Waglay, Co-Founder and Co-CEO of Butterfly.

Deal Metrics:

For a more comprehensive view of this merger and acquisition transaction, please follow the link to the Deal Metrics page here:

Deal Metrics for the acquisition of The Duckhorn Portfolio, Inc. (NAPA) by Butterfly Equity

The Deal Metrics page for each merger or acquisition includes:

• A spread history chart of the merger from announcement through eventual completion or failure.
• Updates on the merger progress, including expiration of the HSR period, regulatory approvals, shareholder votes, etc.
• News and SEC filings.
• A historical record of deal updates.
• And much more.

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Editor’s Note: Baranjot Kaur contributed to this article