A leading private investment firm, Butterfly Equity, has acquired The Duckhorn Portfolio, a renowned wine group, in an all-cash transaction valued at $1.95 billion. This strategic move marks a significant milestone for both companies, with The Duckhorn Portfolio’s shareholders set to receive a substantial premium of $11.10 per share, representing a 65% increase over the company’s 90-day average share price.
Deirdre Mahlan, CEO and Chairperson of The Duckhorn Portfolio, expressed enthusiasm for the deal, stating, “This announcement is a testament to the hard work and dedication of our team, and we’re thrilled to partner with Butterfly Equity to drive our next phase of growth.” Mahlan, who joined the company last year, highlighted the synergies between the two firms, noting that Butterfly Equity’s investment will enable The Duckhorn Portfolio to capitalize on new opportunities and accelerate its expansion plans.
Butterfly Equity, known for its investments in the food and beverage sectors, has a diverse portfolio that includes Generous Brands, a leading juice and smoothie manufacturer, and Chosen Foods, a prominent avocado products company. Vishal Patel, a partner at Butterfly Equity, praised The Duckhorn Portfolio’s luxury wine brands, business model, and team, stating, “We believe the company has laid the foundation for a powerful, scalable platform that will drive growth both organically and through strategic acquisitions.”
The transaction is expected to be finalized this winter, subject to customary closing conditions, including a 45-day period during which The Duckhorn Portfolio may solicit alternative offers. Shareholders representing a majority of the company’s outstanding voting power have already committed to supporting the deal with Butterfly Equity.
In conjunction with the acquisition announcement, The Duckhorn Portfolio released its annual financial results, reporting net sales of $405.5 million, a 0.7% increase over the previous year. Excluding Sonoma-Cutrer, net sales declined 4.6%. Net income stood at $56 million, down from $69.3 million the previous year. Mahlan expressed confidence in the company’s future prospects, citing the successful integration of Sonoma-Cutrer and the ongoing execution of strategic initiatives as key drivers of growth and profitability.
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