Duckhorn Acquired By LA Private Equity Firm Butterfly For $1.95 Billion
October 7, 2024The Duckhorn Portfolio announced this morning it has agreed to be acquired by Los Angeles-based private equity firm Butterfly for $1.95 billion. According to Impact Databank, Duckhorn is the 20th-largest wine marketer in the U.S. by volume, up 5.5% to 2.6 million cases last year. Its full-year sales, due to be announced later today, are expected at around $400 million.
Publicly listed Duckhorn will become a private company after the closing of the transaction, expected this winter. The deal was unanimously approved by the Duckhorn board. It includes a customary 45-day “go-shop” period expiring November 20, through which Duckhorn may solicit, consider and negotiate alternative acquisition proposals from third parties.
Duckhorn is among the leaders in the U.S. wine segment’s luxury tier. In calendar 2023, the company’s top-seller Decoy by Duckhorn grew an estimated 2% to 1.45 million cases in the U.S., according to Impact Databank, up from 1.1 million cases three years earlier, while flagship label Duckhorn Vineyards rose an estimated 3.5% to 305,000 cases and Decoy Ltd jumped 35% to 166,000 cases. Other brands in the portfolio include Kosta Browne, Goldeneye, Paraduxx, Calera, Migration, Postmark, Canvasback, Greenwing, and latest acquisition Sonoma-Cutrer, which grew 7% to 580,000 cases.
Founded in 2016, Butterfly specializes in “seed-to-fork” investments with a portfolio that includes Milk Specialties, Chosen Foods, MaryRuth Organics, Orgain, Bolthouse Fresh Foods, and QDOBA, among others.
“Based on our long history of success and innovation, and our position as one of America’s most successful luxury wine companies, Butterfly believes strongly in The Duckhorn Portfolio and is fully invested in helping us achieve our next phase of growth,” said Duckhorn chairperson and CEO Deirdre Mahlan. “Just as important, Butterfly brings a proven track record of strengthening its portfolio companies while helping them advance their long-term strategic objectives.”
“As a leading pure-play luxury wine producer, Duckhorn has, in our view, the best portfolio and strongest fundamentals in the industry,” said Vishal Patel, Partner, Butterfly. “We believe the Company’s curated suite of luxury wine brands, structurally advantaged business model, and world-class team have laid the foundation for a powerful, scalable platform, which will continue to drive growth both organically and through strategic acquisitions.”—Daniel Marsteller
Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.
