Duckhorn Wine Group Bought by Butterfly Equity
The Duckhorn Portfolio has been bought by Butterfly Equity, a Los Angeles-based private equity firm specializing in the food and beverage sector.
As per the agreement, Butterfly will acquire the wine company for 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 the company’s common stock over the 90-day trading period ending on October 4, 2024. Following the completion of the transaction, Duckhorn will become a privately held company.
Duckhorn was established in 1976 and today includes leading brands like Duckhorn Vineyards, Decoy, Sonoma-Cutrer and Kosta Browne. Duckhorn wines are available to consumers on five continents and in more than 50 countries. Following the completion of the transaction, the company will continue to be headquartered in St. Helena, CA, and will operate eleven winery brands under The Duckhorn Portfolio name.
“This announcement is excellent news for the future of our Company and for stockholders of The Duckhorn Portfolio, who will receive a substantial premium,” says Deirdre Mahlan, Duckhorn president, CEO and chairperson. “Based on our long history of success and innovation, and our position as one of America’s most successful luxury wine companies, Butterfly believes strongly in The Duckhorn Portfolio and is fully invested in helping us achieve our next phase of growth. Just as important, Butterfly brings a proven track record of strengthening its portfolio companies while helping them advance their long-term strategic objectives. Through our partnership with Butterfly, we expect The Duckhorn Portfolio will have enhanced resources to build on our strong foundation and to further scale our operations. We are excited to work with the Butterfly team to begin writing an exciting new chapter in the story of The Duckhorn Portfolio.”
Founded in 2016, Butterfly is a private equity firm dedicated to investing in the “seed-to-fork” food ecosystem in North America with a portfolio including Milk Specialties Global, Chosen Foods, MaryRuth Organics, Orgain, Bolthouse Fresh Foods and QDOBA, among others.
“We are honored to partner with Duckhorn and welcome the Company to the Butterfly family,” says Adam Waglay, co-founder and co-CEO of Butterfly. “This is an incredible opportunity, and we look forward to bringing our specialized expertise and deep food and beverage network to bear to help amplify and accelerate the Company’s mission to have their wine poured wherever fine wines are served throughout North America and the world.”
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.
Last year, Brown-Forman sold Sonoma-Cutrer Vineyards to The Duckhorn Portfolio while also acquiring a 21.5% ownership of the company.
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