Duckhorn Wine Maker Set to Be Acquired by Butterfly Equity in $1.95 Billion Deal, According to Reuters

Premier luxury wine maker Duckhorn Portfolio announced on Monday that it will be acquired by Butterfly Equity in an all-cash deal valued at $1.95 billion.

Butterfly Equity will offer Duckhorn stockholders $11.10 per share, which represents an approximate 106% premium over the wine maker’s most recent closing price on Friday. In premarket trading, Duckhorn shares were priced at $10.92.

This transaction has received unanimous approval from Duckhorn’s board and is anticipated to finalize this winter, pending regulatory approval. Additionally, during a 45-day “go-shop” period that concludes on November 20, Duckhorn’s board has the option to terminate the agreement if a more favorable proposal is presented by third parties.

Founded in 1976 and based in St. Helena, California, Duckhorn has a diverse portfolio of premium brands, including Duckhorn Vineyards, Decoy, Sonoma-Cutrer, and Kosta Browne.

In its fourth-quarter performance, the company reported a 7.3% increase in sales compared to the previous year, although its gross profit margin dropped by 740 basis points to 47.8%.

J.P. Morgan Securities and KKR Capital Markets are serving as financial advisors to Duckhorn and Butterfly, respectively.