The Duckhorn Portfolio, a North American wine company, and Butterfly Equity, a Los Angeles-based private equity firm specializing in the food and beverage sector, announced that they have entered into a definitive agreement under which Duckhorn will be acquired by private equity funds managed by Butterfly in an all-cash transaction that values the company at approximately $1.95 billion.
Under the terms of the agreement, Duckhorn stockholders will receive $11.10 per share in cash, representing a premium of approximately 65.3% to the volume weighted average share price of Duckhorn’s common stock over the 90-day trading period ending Oct. 4. Following the completion of the transaction, Duckhorn will become a privately held company.
Duckhorn was established in 1976 and is a leading pure-play luxury wine producer in the U.S. with a curated portfolio of premium brands, including Duckhorn Vineyards, Decoy, Sonoma-Cutrer and Kosta Browne. Duckhorn wines are available to luxury consumers on five continents and in over 50 countries. Following the completion of the transaction, the company will continue to be headquartered in St. Helena, California, and will operate 11 winery brands under the Duckhorn Portfolio name.
Founded in 2016, Butterfly is a leading private equity firm dedicated to investing in the “seed-to-fork” food ecosystem in North America with a diverse portfolio including Milk Specialties Global, Chosen Foods, MaryRuth Organics, Orgain, Bolthouse Fresh Foods and QDOBA, among others. The transaction, which was unanimously approved by the Duckhorn board, is expected to close this winter, subject to customary closing conditions, including approval by Duckhorn stockholders and the receipt of required regulatory approvals.