Duckhorn Portfolio Q4 Adj. EPS Beats View; To Go Private In $1.95 Bln Deal; Stock More Than Doubles

(RTTNews) - Shares of Duckhorn Portfolio, Inc. (NAPA) more than doubled in pre-market activity on the NYSE after the premier luxury wine company on Monday reported fourth-quarter adjusted earnings above market estimates, and a deal to be bought by private equity firm Butterfly Equity in $1.95 billion all-cash deal. Meanwhile, the company's fourth-quarter profit declined, despite higher revenues.

Duckhorn entered into a definitive agreement to go private in deal with Los Angeles-based private equity firm specializing in the food and beverage sector.

Under the deal terms, Duckhorn stockholders will receive $11.10 per share in cash, representing a premium of around 65.3 percent to the volume weighted average share price of Duckhorn's common stock over the 90-day trading period ending on October 4.

The transaction, which was unanimously approved by the Duckhorn Board of Directors, is expected to close this winter, subject to customary closing conditions.

Following the deal closure, Duckhorn's common stock will cease to trade and no longer be listed on the NYSE and it will become a privately held company. The firm will continue to be headquartered in St. Helena, California and will operate eleven winery brands under The Duckhorn Portfolio name.

The completion of the transaction is not subject to a financing condition, the firm said.

The agreement includes a customary 45-day "go-shop" period expiring on November 20, during which Duckhorn and its advisors will be permitted to solicit, consider and negotiate alternative acquisition proposals from third parties.

In its fourth quarter, Duckhorn's bottom line totaled $11.30 million or $0.08 per share, compared to $17.77 million or $0.15 per share last year.

Adjusted earnings were $20.42 million or $0.14 per share for the period, compared to $16.74 million or $0.15 per share a year ago.

Analysts on average had expected the company to earn $0.10 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

The company's sales for the quarter rose 7.5 percent to $108.97 million from $101.36 million last year.

Net sales were $107.40 million, an increase of 7.3 percent, from $100.10 miilion in the the prior year. Excluding Sonoma-Cutrer, net sales declined 13.9 percent.

In pre-market activity on the NYSE, Duckhorn shares were trading at $10.86, up 101.11 percent.

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