Constellation Brands a leading beverage alcohol company including spirits brands like SVEDKA Vodka, Casa Noble Tequila and High West Whiskey has announced it has signed an agreement with Sazerac Company, one of America’s oldest privately held distillers, to divest the Paul Masson Grande Amber Brandy brand. The deal includes related inventory and interests in certain contracts for an aggregate of approximately $255 million. The deal is subject to certain purchase price and closing adjustments, requires FTC review and clearance, and is expected to close in the second quarter of fiscal 2021.
Just last week it was also announced that Sazerac parent company to Buffalo Trace Distillery and Barton 1792 Distillery which owns brands like Pappy Van Winkle, E.H. Taylor, W.L. Weller, George Stagg and more had agreed to acquire Early Times Whiskey, Canadian Mist and Collingwood brands from Brown-Forman. The terms of this deal were not disclosed.
Constellation Also to Divest Nobilo Wine Brand
Constellation has signed a separate agreement with E. & J. Gallo Winery to divest its Nobilo Wine brand and certain related assets and liabilities for $130 million, subject to purchase price and closing adjustments. The Nobilo transaction is expected to close by the end of the second quarter of fiscal 2021. This agreement was previously announced in December 2019 and is contingent on closing the amended revised deal announced in May 2020 in which Constellation agreed to divest a portion of its wine and spirits portfolio principally priced at $11 retail and below, and certain related facilities to E. & J. Gallo Winery for approximately $1.03 billion, subject to closing adjustments, of which $250 million is an earnout based on divested brand performance over a two-year period after closing. This amended revised deal, which requires FTC review and clearance, and governmental approvals, is expected to close in the second quarter of fiscal 2021.
“These agreements represent another step forward in our efforts to transform our wine and spirits business,” said Bill Newlands, president and chief executive officer at Constellation Brands.
“Thanks to the continued hard work of our Constellation team members, together with our distributor and retailer partners, our strategy continues to gain momentum. We look forward to closing these transactions in the coming months.”
Constellation Brands is a leading international producer of and marketer of beer, wine and spirits with operations in the U.S., Mexico, New Zealand, Italy and Canada. The company’s Constellation Ventures include investments in Catoctin Creek Distilling, Bardstown Bourbon Company, Nelson’s Green Brier Distillery, Real McCoy Spirits Corp. and Copper & Kings American Brandy.
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