Winemaker Duckhorn Agrees to Be Taken Private in $1.95 Billion Deal – WSJ
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SOURCE: Dean Seal | Wall Street Journal
Duckhorn Portfolio has agreed to be taken private by Butterfly Equity in an all-cash deal that values the winemaker at $1.95 billion.
The California-based producer of premium wines said Monday that the private-equity firm has offered to buy the company for $11.10 a share, more than double its $5.40 closing share price last week.
Duckhorn’s stock surged to $10.88 in premarket trading.
The deal has been unanimously approved by directors and is expected to close this winter.
The agreement includes a 45-day “go shop” provision that allows Duckhorn to solicit competing bids. The period ends just before midnight on Nov. 20.
The take-private deal comes as weakness in the wine markets weighs on the alcohol industry.
Duckhorn cut guidance over the summer, citing the soft selling environment and expectations for flat growth in luxury wines. When the market closed Friday, Duckhorn shares had fallen 45% year-to-date.
The winemaker reported Monday that sales were up 7% at $107.4 million in the quarter ended July 31, though without the impact of its recently acquired Sonoma-Cutrer winery, the top line would’ve dropped 14%.
Butterfly Equity is a Beverly Hills, Calif.-based food investor that acquired the Mexican food fast-casual chain Qdoba in 2022.
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This article was originally published on the Wall Street Journal – navigate to the original article here.
