Wine maker Duckhorn to be acquired by Butterfly Equity in $1.95 billion deal By Reuters

(Reuters) – Premier luxury wine maker Duckhorn Portfolio said on Monday it will be taken private by Butterfly Equity in an all-cash deal valued at $1.95 billion.

Private equity firm Butterfly will pay Duckhorn shareholders $11.10 per share, representing a premium of about 106% to the winemaker’s last close on Friday.

Duckhorn shares traded at $10.92 in premarket trading.

The transaction, which was unanimously approved by Duckhorn’s board of directors, is expected to close this winter and is subject to regulatory approval.

Duckhorn’s board will have the right to terminate the deal and enter into a better proposal from a third party during the 45-day “go-shop” period that expires Nov. 20, the company said.

The company from St. Helena, California was founded in 1976 and has a portfolio of premium brands including Duckhorn Vineyards, Decoy, Sonoma-Cutrer and Kosta Browne.

The company’s fourth-quarter sales rose 7.3 percent from a year earlier, but gross profit margin fell 740 basis points to 47.8 percent.

JP Morgan Securities and KKR Capital Markets are acting as financial advisors to Duckhorn and Butterfly, respectively.