Constellation Brands, Inc. (NYSE: STZ and STZ.B), a leading
beverage alcohol company, today announced it has signed an
agreement with Sazerac Company, Inc., one of America’s oldest
privately held distillers, to divest the Paul Masson Grande Amber
Brandy brand, 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.
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.”
Additional commentary related to these agreements will be
provided during Constellation Brands’ first quarter fiscal 2021
results conference call to be held Wednesday, July 1, 2020, at
11:30 a.m. EDT. The conference call can be accessed by dialing
+1-877-673-1771 and entering conference identification number
2076116, beginning at 11:20 a.m. EDT. A live, listen-only webcast
of the conference call will be available on the company’s website,
www.cbrands.com, under the Investors/Events & Presentations
section.
FORWARD-LOOKING STATEMENTSThis news release
contains forward-looking statements. All statements other than
statements of historical fact are forward-looking statements. The
word “expect” and similar expressions are intended to identify
forward-looking statements, although not all forward-looking
statements contain such identifying words. These statements may
relate to business strategy, future operations, prospects, plans
and objectives of management, as well as information concerning
expected actions of third parties. All forward-looking statements
involve risks and uncertainties that could cause actual results to
differ materially from those set forth in, or implied by, such
forward-looking statements.
The forward-looking statements are based on management's current
expectations and should not be construed in any manner as a
guarantee that such results will in fact occur or will occur on any
contemplated timetable. All forward-looking statements speak only
as of the date of this news release and Constellation Brands
undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. The revised wine and spirits transaction, the Nobilo
transaction and the Paul Masson Grande Amber Brandy transaction are
each subject to the satisfaction of certain closing conditions,
including the receipt of required regulatory clearances and other
governmental approvals. The Nobilo transaction is also conditioned
on the completion of the revised wine and spirits transaction.
There can be no assurance that the revised wine and spirits
transaction, the Nobilo transaction, or the Paul Masson Grande
Amber Brandy transaction will occur or will occur on the terms or
timetables contemplated hereby or that Constellation Brands will
receive any earnout (contingent consideration).
In addition to risks and uncertainties associated with ordinary
business operations, the forward-looking statements contained in
this news release are subject to other risks and uncertainties,
including completion of the revised wine and spirits transaction,
the Nobilo transaction, and the Paul Masson Grande Amber Brandy
transaction on the expected terms, conditions, and timetables;
regulatory requirements; actual purchase price adjustments and
other actual closing adjustments; the actual market performance of
brands included in the contingent consideration payment
opportunity; the accuracy of all projections; and other factors and
uncertainties disclosed from time-to-time in Constellation Brands’
filings with the Securities and Exchange Commission, including its
Annual Report on Form 10-K for the fiscal year ended February 29,
2020, which could cause actual future performance to differ from
current expectations.
ABOUT CONSTELLATION BRANDSAt Constellation
Brands (NYSE: STZ and STZ.B), our mission is to build brands that
people love because we believe sharing a toast, unwinding after a
day, celebrating milestones, and helping people connect, are Worth
Reaching For. It’s worth our dedication, hard work, and the bold
calculated risks we take to deliver more for our consumers, trade
partners, shareholders, and communities in which we live and work.
It’s what has made us one of the fastest-growing large CPG
companies in the U.S. at retail, and it drives our pursuit to
deliver what’s next.
Today, we are a leading international producer and marketer of
beer, wine, and spirits with operations in the U.S., Mexico, New
Zealand, and Italy. Every day, people reach for our high-end,
iconic imported beer brands such as Corona Extra, Corona Light,
Corona Premier, Modelo Especial, Modelo Negra, and Pacifico, and
our high-quality premium wine and spirits brands, including the
Robert Mondavi Brand Family, Kim Crawford, Meiomi, The Prisoner
Brand Family, SVEDKA Vodka, Casa Noble Tequila, and High West
Whiskey.
But we won’t stop here. Our visionary leadership team and
passionate employees from barrel room to boardroom are reaching for
the next level, to explore the boundaries of the beverage alcohol
industry and beyond. Join us in discovering what’s Worth Reaching
For.
To learn more, follow us on Twitter @cbrands and visit
www.cbrands.com.
MEDIA CONTACTS |
INVESTOR RELATIONS CONTACTS |
Mike McGrew 773-251-4934 /
michael.mcgrew@cbrands.comAlex Wagner 415-912-3788 /
alex.wagner@cbrands.com |
Patty Yahn-Urlaub 585-678-7483 /
patty.yahn-urlaub@cbrands.comBob Czudak 585-678-7170 /
bob.czudak@cbrands.com |
A downloadable PDF copy of this news release enhanced with
multimedia links can be found
here: http://ml.globenewswire.com/Resource/Download/234323a3-c0a4-4478-a427-bb5f46b6e833
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