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Private equity firm Butterfly has announced its acquisition of the Duckhorn Portfolio of luxury wines for $1.95 billion in an all-cash transaction. Duckhorn, based in Napa Valley, California, and operating 11 wineries across the West Coast, will continue to operate under its name as a privately held company after the transaction. Butterfly Equity, known for various food and beverage acquisitions since 2016, sees this purchase as a strategic move in the wine industry.
The acquisition comes amidst a larger trend of consolidation in the wine market due to declining sales and changing consumer preferences. Deirdre Mahlan, Duckhorn’s president and CEO, believes the partnership with Butterfly will fuel the company’s growth. Shareholders of Duckhorn will receive a substantial premium of $11.10 per share in cash as part of the deal.
Butterfly sees the acquisition as an opportunity to further establish Duckhorn as a leading luxury wine producer in North America. The company’s brands, including Duckhorn Vineyards and Decoy, have a strong foundation, and the partnership with Butterfly is expected to provide enhanced resources for scaling operations and strategic growth.
Despite challenges faced by the wine industry, particularly in 2024 with declining consumption, premiumization remains a key driver for companies like Duckhorn. Critics have raised concerns about the deal, questioning whether it serves the best interests of Duckhorn’s shareholders. Wohl & Fruchter LLP is investigating the transaction to ensure fair treatment of shareholders and full disclosure of material information.
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Lara Heller graduated from the University of Amsterdam in the Netherlands with a degree in New Media and Communication. During her studies, she specialized in digital media, social media strategies, and content creation. She participated in various digital media projects during her university years, focusing particularly on online journalism and media ethics. After graduation, Lara started working as a content strategist at one of Europe’s leading digital media agencies, where she developed campaigns that strengthened the digital presence of numerous international brands.
