(Bloomberg) -- The Duckhorn Portfolio Inc. is going private in a buyout deal valuing the company at $1.95 billion.
Food-focused private equity firm Butterfly Equity is acquiring the California-based winemaker for $11.10 a share, according to an announcement on Monday. The price represents a premium of more than 100% compared to Duckhorn’s Friday closing price, Bloomberg’s calculation showed.
The transaction includes a 45-day go-shop period and is subject to shareholder and regulatory approval.
The deal marks a return of a leveraged buyout as private equity firms shied away from deals due to elevated interest rates.
Duckhorn shares jumped 100% on Monday after the deal announcement and were trading at $10.93 at 11:20 a.m. in New York.
Deirdre Mahlan, Duckhorn’s chief executive officer, said the deal will give the company access to greater resources for expansion. She also highlighted the “substantial premium” that the sale price will give to stockholders.
Vishal Patel, partner at Butterfly, said that Duckhorn’s wine portfolio and business model have “laid the foundation for a powerful, scalable platform, which will continue to drive growth both organically and through strategic acquisitions.”
Duckhorn went public during the IPO boom in 2021 under the ticker “NAPA.” The company’s shares will delist from the New York Stock Exchange after the closing of the deal, according to the announcement.
JPMorgan Chase & Co. advised Duckhorn while KKR Capital Markets was a capital markets advisor to Butterfly.
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