Winemaker Duckhorn Agrees to Be Taken Private in $1.95 Billion Deal
Napa Valley, CA – October 27, 2023 – Duckhorn Portfolio, a renowned producer of luxury wines, has agreed to be taken private in a $1.95 billion deal led by private equity firm The Carlyle Group. The transaction, expected to close in the first quarter of 2024, will see Duckhorn shares delisted from the New York Stock Exchange and the company become a privately held entity.
The deal represents a significant premium over Duckhorn’s closing price on Friday, reflecting the strong demand for high-quality wine brands in the luxury market. The Carlyle Group, known for its investments in consumer and retail businesses, sees great potential in Duckhorn’s portfolio, which includes iconic brands like Duckhorn Vineyards, Decoy, and Goldeneye.
“We are excited to partner with The Carlyle Group, whose deep understanding of the consumer sector and commitment to growth will help us accelerate our vision for the future,” said Alex Ryan, CEO of Duckhorn Portfolio. “This transaction will provide us with the flexibility and resources to invest in our brands, vineyards, and people, allowing us to continue to deliver exceptional wines and experiences to our loyal customers.”
The transaction has been approved by Duckhorn’s board of directors and is subject to customary closing conditions, including shareholder approval. The move to private ownership is expected to provide Duckhorn with greater flexibility to pursue long-term growth strategies, potentially including acquisitions or expansion into new markets.
This deal signals a continued trend of private equity firms investing in the luxury wine sector, driven by the growing demand for premium wines and the appeal of established brands like Duckhorn.