10:45 AM EDT, 10/07/2024 (MT Newswires) -- Duckhorn Portfolio ( NAPA ) agreed to be acquired and taken private by funds managed by private equity firm Butterfly Equity in a deal that values the luxury wine producer at about $1.95 billion.

Duckhorn shareholders will receive $11.10 per share in cash, representing a roughly 65% premium to the company's average share price over the 90-day trading period ended Friday. Duckhorn's stock soared 102% in Monday's trading session.

The deal, which requires clearance from regulators and approval from Duckhorn's investors, is expected to be completed this winter.

"This announcement is excellent news for the future of our company and for stockholders of The Duckhorn Portfolio ( NAPA ), who will receive a substantial premium," Duckhorn Chief Executive Deirdre Mahlan said in a statement. "Through our partnership with Butterfly, we expect The Duckhorn Portfolio ( NAPA ) will have enhanced resources to build on our strong foundation and to further scale our operations."

Duckhorn will stop trading on the New York Stock Exchange after the deal is completed and will become a privately held company. The company will continue to be headquartered in California and operate 11 winery brands under the Duckhorn Portfolio ( NAPA ) name.

The deal includes a 45-day "go-shop" period expiring Nov. 20, allowing Duckhorn to solicit and accept a superior acquisition proposal, according to the statement.

"Duckhorn has, in our view, the best portfolio and strongest fundamentals in the industry," Butterfly Partner Vishal Patel said. The company's luxury wine brands suite and "structurally advantaged business model" have laid the base for a "powerful, scalable platform which will continue to drive growth both organically and through strategic acquisitions," Patel added.

Separately, Duckhorn reported fiscal fourth-quarter adjusted earnings of $0.14 per share, down from $0.15 the year before. Five analysts polled by Capital IQ expected normalized EPS of $0.10. Sales rose 7.3% year over year to $107.4 million, ahead of the $104.8 million consensus based on the same number of analysts.