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The Californian wine company The Duckhorn Portfolio is being acquired by the investment firm Butterfly Equity. The Duckhorn Portfolio includes Duckhorn Vineyards, Sonoma-Cutrer, and Kosta Browne, among others. Butterfly is paying $1.95 billion (€1.77 billion) for this.
The Duckhorn Portfolio went public on the New York Stock Exchange in March 2021, raising $300 million. The shares were initially traded at $19 and reached an all-time high of $24 three months later. However, they have continuously declined over the past three years and were worth only $5.40 last Friday. Butterfly is offering shareholders $11.10 per share in cash, which is 65.3 percent more than the average price over the past 90 days. The stock rose immediately after the announcement of the acquisition by Butterfly, increasing by 101 percent to $10.86. After the transaction is completed, Duckhorn will be delisted and converted into a privately held company.
Vishal Patel, a partner at Butterfly Equity, described Duckhorn as a "leading luxury wine producer" and emphasized that "Duckhorn has, in our view, the best portfolio and the strongest fundamentals in the industry." With this acquisition, Butterfly strengthens its position in the food and beverage industry, in which it specializes. Duckhorn's latest financial results show a year-over-year revenue increase of 7.3 percent to a total of $107.4 million (€97.8 million), exceeding Wall Street estimates by 2.5 percent. Analysts expect Duckhorn's revenue to increase by another 18.8 percent over the next twelve months.
(al / Source: drinksbusiness)