John Lamparski / Getty Images for NYCWFF
A view of The Duckhorn Portfolio during the Food Network New York City Wine & Food Festival presented by Capital One – Southern Glazer’s Wine & Spirits Trade Day hosted by Wine Spectator at Grand Tasting at Pier 76 on October 13, 2023 in New York City.
Key Takeaways
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The Duckhorn Portfolio agreed to be purchased for $1.95 billion from private-equity firm Butterfly and taken private.
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The winemaker’s investors will get $11.10 per share, more than double the price at Friday’s close.
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Duckhorn also announced better-than-expected fourth-quarter sales and adjusted profit.
Shares of The Duckhorn Portfolio (NAPA) doubled Monday after the Napa Valley winemaker agreed to be taken private by private-equity firm Butterfly for $1.95 billion.
Duckhorn, whose brands include Decoy and Paraduxx, said the agreement gives investors $11.10 in cash for each share they own, which represents a 106% increase from its closing price on Friday.
CEO Says Deal ‘Excellent News’ for Future of Company
Chief Executive Officer (CEO) Deirdre Mahlan called the agreement “excellent news for the future of our company and for stockholders of The Duckhorn Portfolio, who will receive a substantial premium.”
The transaction is expected to close “this winter,” and Duckhorn has a 45-day “go-shop” period expiring on Nov. 20 to seek other suitors.
The company also reported fourth-quarter adjusted earnings per share (EPS) of $0.14, with revenue up 7.3% year-over-year to $107.4 million. Both topped consensus estimates of analysts polled by Visible Alpha.
The Duckhorn Portfolio shares hit an all-time low on Friday, and with today’s huge gains they’ve moved into positive territory for the year.
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