Shares of The Duckhorn Portfolio, Inc. (NYSE: NAPA) experienced a significant surge following the announcement of a potential acquisition. By the latest pre-market update, NAPA’s stock was trading at $10.90, reflecting a remarkable 101.85% increase. This sharp rise is attributed to the news of Butterfly Equity, a Los Angeles-based private equity firm, initiating an acquisition deal with Duckhorn.
Acquisition Agreement Details
In an all-cash deal estimated to be worth $1.95 billion, Butterfly Equity will acquire Duckhorn. NAPA shareholders would get paid $11.10 in cash per share, which is 65.3% more than the stock’s 90-day volume-weighted average price. After the purchase closes, Duckhorn will no longer be a publicly traded company and will instead be a privately held company.
NAPA’s Standout Position in the Wine Industry
Duckhorn Vineyards, Decoy, and Kosta Browne are just a handful of the high-end labels it has carried since its establishment in 1976. Duckhorn has made a name for itself as one of the leading makers of premium wines in the nation. More than 50 countries and five continents provide high-end markets with Duckhorn wines.
Post-acquisition, the company will continue to operate under its current structure, with headquarters in St. Helena, California, and maintain its eleven winery brands under The Duckhorn Portfolio name.
Strategic Partnership for Growth
The acquisition is regarded as a positive development for Duckhorn’s future. Butterfly Equity has a successful history of nurturing its portfolio companies, helping them advance strategic goals. The firm is committed to supporting The Duckhorn Portfolio in scaling operations and strengthening its industry leadership.
The deal was unanimously approved by Duckhorn’s Board of Directors and is expected to close by winter, subject to customary approvals. The agreement includes a 45-day “go-shop” period allowing Duckhorn to seek alternative acquisition offers until November 20, 2024. However, no financing conditions are required for the current deal.
