Constellation to Sell Nobilo Wine Brand to Gallo for $130 Million
December 12 2019 - 10:51AM
Dow Jones News
By Colin Kellaher
Constellation Brands Inc. (STZ) Thursday said it agreed to sell
its New Zealand-based Nobilo Wine brand and related assets to E.
& J. Gallo Winery Inc. for $130 million.
The Victor, N.Y., beer and spirits company said the transaction
is separate from the revised larger deal it reached with Gallo
aimed at addressing competitive concerns raised by the U.S. Federal
Trade Commission.
Constellation said it expects to complete the sale of the Nobilo
brand, which had net sales of nearly $40 million on volume of
roughly 550,000 cases for the 12 months ended Aug. 31, in the first
half of fiscal 2021.
In total, the businesses privately held Gallo is acquiring in
both transactions had net sales of $860 million on volume of about
22 million cases for the same 12-month period, Constellation
said.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
December 12, 2019 10:36 ET (15:36 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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