STZ Constellation Brands Inc

Constellation Brands Inc. agreed to acquire Ballast Point Brewing & Spirits for roughly $1 billion, adding a craft beer maker to the alcoholic-beverage company's beer business.

Constellation became one of the largest U.S. beer distributors in 2013 with its acquisition of U.S. distribution rights for top import Corona, several other Mexican beers plus a Mexican brewery for $5.3 billion from Belgium's Anheuser-Busch InBev NV. That deal stemmed from AB InBev's larger $20.1 billion takeover of Mexico's Grupo Modelo SAB, in which AB InBev had to divest itself of the assets to win U.S. regulatory approval.

Constellation Chief Executive Rob Sands said in prepared remarks on Monday that "along with imports, craft beer is a key driver of growth and premiumization within the beer industry, with craft doubling its share of the U.S. beer market in the last five years."

Constellation's beer business has been a growth driver in recent quarters, turning in stronger sales growth than its wine and spirits business.

Ballast Point's 2015 sales are projected at $115 million. The company is on track to sell more than 4 million cases of beer this year, more than double its sales volume from 2014.

Ballast Point, which began in 1996 as a small group of home brewers, has four facilities in the San Diego area, employs more than 500 workers and sells beer in more than 30 states.

The deal, set to close by year's end, is expected to add between 5 cents a share and 6 cents a share to Constellation's earnings for the fiscal year ending in February 2017.

Write to Tess Stynes at tess.stynes@wsj.com

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(END) Dow Jones Newswires

November 16, 2015 10:25 ET (15:25 GMT)

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