(Reuters) -Premier luxury wine maker Duckhorn Portfolio said on Monday it would be taken private by Butterfly Equity in an all-cash deal worth $1.95 billion.
Private equity firm Butterfly will pay Duckhorn stockholders $11.10 per share, representing a premium of about 106% to the wine maker's last close on Friday.
Shares of Duckhorn were up more than 100% at $10.89 in early trading.
The transaction, which was unanimously approved by the Duckhorn board, is expected to close this winter and subject to regulatory approval.
Duckhorn's board will have the right to terminate the agreement and enter into a better proposal from third parties during the 45-day "go-shop" period, expiring on Nov. 20, the company said.
The St. Helena, California-based company, was established in 1976 and has a curated portfolio of premium brands, including Duckhorn Vineyards, Decoy, Sonoma-Cutrer and Kosta Browne.
The company's fourth-quarter sales grew 7.3% from a year earlier but its gross profit margin declined 740 basis points to 47.8%.
J.P. Morgan Securities is acting as financial advisor to Duckhorn, while KKR Capital Markets is acting as capital markets advisor to Butterfly.