The Duckhorn Portfolio (NYSE: NAPA) has announced its fiscal fourth quarter and full year 2024 financial results, coinciding with the news of its acquisition by Butterfly Equity in a $1.95 billion all-cash transaction. The acquisition represents 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 October 4, 2024.
As a leading pure-play luxury wine producer, Duckhorn has reported a strong financial performance. The company operates eleven winery brands under the Duckhorn Portfolio name, including Duckhorn Vineyards, Decoy, Sonoma-Cutrer, and Kosta Browne. It has a curated portfolio of premium brands, with its wines available to luxury consumers on five continents and in over 50 countries.
Butterfly Equity, a private equity firm specializing in the food and beverage sector, is set to acquire Duckhorn. Butterfly's portfolio includes category-leading food and beverage businesses such as Milk Specialties Global, Chosen Foods, and Bolthouse Fresh Foods, 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 company's financial results for the fourth quarter and fiscal year ended July 31, 2024, were scheduled to be announced, with an earnings call planned. However, in light of the announced transaction with Butterfly, Duckhorn has canceled the earnings call.
J.P. Morgan Securities LLC is acting as the financial advisor to Duckhorn, and Ropes & Gray LLP is its legal counsel. On the other hand, KKR Capital Markets LLC is acting as the capital markets advisor to Butterfly, with Kirkland & Ellis LLP as its legal counsel.
The Duckhorn Portfolio is North America's premier luxury wine company, with eleven wineries, ten state-of-the-art winemaking facilities, and eight tasting rooms. The company operates over 2,200 acres of vineyards spanning 38 estate properties, sourcing grapes from its own estate vineyards and fine growers in various regions.
Butterfly Equity, since its founding in 2016, has invested in a diverse portfolio of category-leading businesses representing approximately $5 billion in enterprise value, including Milk Specialties Global, Chosen Foods, and Qdoba, among others.
Today the company's shares have moved 0.0% to a price of $5.4. For the full picture, make sure to review Duckhorn Portfolio's 8-K report.
