Butterfly Equity (Butterfly), a Los Angeles-based private equity firm specialiSing in the food and beverage sector, is to acquire The Duckhorn Portfolio, a North American high-end wine company in an all-cash transaction that values the business at approximately $1.95bn.
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 on 4 October, 2024. Following the completion of the transaction, Duckhorn will become a privately held company.
Duckhorn, which was established in 1976, owns a curated portfolio of premium brands, including Duckhorn Vineyards, Decoy, Sonoma-Cutrer and Kosta Browne. Duckhorn wines are available in over 560countries across five continents.
Following the completion of the transaction, the Company will continue to be headquartered in St Helena, California and will operate eleven winery brands under The Duckhorn Portfolio name.
Founded in 2016, Butterfly is 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 of Directors, is expected to close this winter, subject to customary closing conditions, including approval by Duckhorn stockholders and the receipt of required regulatory approvals. The completion of the transaction is not subject to a financing condition.
Upon completion of the transaction, Duckhorn’s common stock will cease to trade and no longer be listed on the New York Stock Exchange.