Esteemed luxurious wine firm The Duckhorn Portfolio might be acquired by Los Angeles-based personal fairness agency Butterfly Fairness for $1.95 billion in an all-cash transaction, in line with a Monday press launch.
Napa Valley’s esteemed Duckhorn Vineyards was first established in 1976, and rapidly grew to become well-liked for its high-end expressions of Merlot. The model has since expanded to a full portfolio of premium manufacturers together with Decoy, Kosta Browne, Goldeneye, and extra. The corporate additionally acquired Sonoma-Cutrer in November 2023, rising their presence within the white wine class with the third-largest luxurious Chardonnay model within the U.S. In keeping with Shanken’s Affect Databank, Duckhorn is now the Twentieth-largest wine marketer within the U.S. by quantity, promoting 2.6 million circumstances final 12 months.
“As a number one pure-play luxurious wine producer, Duckhorn has, in our view, the very best portfolio and strongest fundamentals within the trade,” Butterfly accomplice Vishal Patel mentioned within the launch. “We imagine the corporate’s curated suite of luxurious wine manufacturers, structurally advantaged enterprise mannequin, and world-class crew have laid the inspiration for a strong, scalable platform, which is able to proceed to drive development each organically and thru strategic acquisitions.”
The deal was unanimously authorized by the Duckhorn Board of Administrators. The Duckhorn Portfolio, which is presently publicly traded, will turn into a personal firm after the deal closes this winter. Beneath the phrases of the settlement, Duckhorn stockholders will obtain $11.10 per share in money, representing a premium of about 65.3 %. The deal additionally features a customary, 45-day “go-shop” interval that expires November 20. Throughout this window, Duckhorn and its advisors might be permitted to solicit, take into account, and negotiate various acquisition proposals from third events.
“This announcement is good news for the way forward for our firm and for stockholders of The Duckhorn Portfolio, who will obtain a considerable premium,” Duckhorn president, CEO, and chairperson Deirdre Mahlan mentioned of the acquisition within the launch. “Based mostly on our lengthy historical past of success and innovation, and our place as one in every of America’s most profitable luxurious wine corporations, Butterfly believes strongly in The Duckhorn Portfolio and is absolutely invested in serving to us obtain our subsequent section of development. Simply as essential, Butterfly brings a confirmed observe file of strengthening its portfolio corporations whereas serving to them advance their long-term strategic goals.”
Based in 2016, Butterfly Fairness is a food-and-beverage-focused agency, with a portfolio of manufacturers together with Milk Specialties International, Chosen Meals, and QDOBA, amongst others. Due to the agency’s historical past creating worth in related manufacturers, Duckhorn believes that the partnership with Butterfly might help develop its wineries’ attain.
“By means of our partnership with Butterfly, we count on The Duckhorn Portfolio could have enhanced assets to construct on our sturdy basis and to additional scale our operations. We’re excited to work with the Butterfly crew to start writing an thrilling new chapter within the story of The Duckhorn Portfolio,” Mahlan says.
Shortly after the acquisition was introduced, Duckhorn launched its gross sales numbers for its fiscal 12 months by way of July and its fourth quarter web gross sales. Fiscal 12 months web gross sales reached $405.5 million, a rise of $2.8 million or 0.7 % in comparison with the prior 12 months. Barron’s reported Monday morning that the announcement spurred the corporate’s inventory to soar.
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