Napa Valley Winemaker Duckhorn Rises After $300 Million IPO

Duckhorn Portfolio Inc., a California wine producer backed by TSG Consumer Partners, rose 15% in its trading debut Thursday after a $300 million initial public offering.

Duckhorn, based in St. Helena at the center of the Napa Valley wine region, sold 20 million shares Wednesday for $15 apiece after marketing them for $14 and $16 each. The shares, which rose as much as 29%, closed at $17.18 in New York trading, giving the company a market value of $1.98 billion.

The company sold 13.3 million shares, with stockholder Mallard Holdco LLC selling the rest.

Duckhorn, founded in 1976, owns brands including Duckhorn Vineyards, Migration, Decoy, Goldeneye and Canvasback and in 2018 acquired American Pinot Noir winery Kosta Browne.

The company is named after founders Dan and Margaret Duckhorn who started the company with a single vineyard in the Napa Valley. It now includes 843 acres of vineyards and eight wineries, according to its filings. TSG acquired Duckhorn from another private equity firm, GI Partners, in 2016.

For the six months ended Jan. 31, Duckhorn had net income of almost $40 million on net sales of $175 million, according to its filings.

Duckhorn’s offering was led by JPMorgan Chase & Co., Credit Suisse Group AG and Jefferies Financial Group Inc. The company’s shares are trading on the New York Stock Exchange under the symbol NAPA.

©2021 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.