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Butterfly Equity, a private equity firm based in Los Angeles, announced Monday its plans to acquire and take private The Duckhorn Portfolio, a luxury wine maker, in an all-cash deal valued at approximately $1.95 billion. The deal, advised by Kirkland & Ellis LLP for Butterfly and Ropes & Gray LLP for Duckhorn, is expected to close this winter.

Under the terms of the agreement, Duckhorn Portfolio shareholders will receive $11.10 per share in cash, representing a 65.3% premium to Duckhorn’s average share price over the 90 days ending last Friday. Once the transaction is finalized, Duckhorn will delist from the New York Stock Exchange.

butterfly equity to buy duckhorn portfolio : Enhanced Resources for Growth

Deirdre Mahlan, president, CEO, and chairperson of The Duckhorn Portfolio, expressed optimism about the acquisition: "Through our partnership with Butterfly, we expect The Duckhorn Portfolio will have enhanced resources to build on our strong foundation and further scale our operations."

Founded in 1976 in St. Helena, California, Duckhorn is a prominent North American wine producer, offering well-known brands like Duckhorn Vineyards, Decoy, and Sonoma-Cutrer. Its wines are sold in over 50 countries across five continents, solidifying its position as a leading luxury wine maker.

Butterfly Equity's Investment in Duckhorn

Butterfly Equity, which focuses on the "seed-to-fork" food system in North America, has a portfolio that includes brands such as Chosen Foods, Qdoba, and Bolthouse Fresh Foods. Adam Waglay, co-founder and co-CEO of Butterfly, said, “We are honored to partner with Duckhorn and welcome the company to the Butterfly family. This is an incredible opportunity to help amplify and accelerate their mission."

Once the deal is complete, Duckhorn will maintain its headquarters in St. Helena and continue to operate its 11 winery brands under the Duckhorn name. The agreement also includes a 45-day go-shop period, allowing Duckhorn to entertain alternative buyout proposals until Nov. 20.

Regulatory Approvals and Shareholder Support

The acquisition is subject to regulatory approvals and approval by Duckhorn’s shareholders. According to the statement, Duckhorn shareholders representing a majority of the company’s voting power have already agreed to vote in favor of the deal.

The legal team representing Butterfly Equity includes corporate partners Ravi Agarwal, Sean Rodgers, and Steven Choi, among others. Duckhorn’s legal counsel from Ropes & Gray LLP is led by private equity partner Elizabeth Gallucci and mergers and acquisitions partner Chris Comeau.