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Constellation Brands to sell Canadian wine business for $786m

Published 18 October 2016

Constellation Brands has agreed to sell its Canadian wine business to Ontario Teachers' Pension Plan for about C$1.03bn ($786m).

The sale includes Jackson-Triggs and Inniskillin wine brands and wineries, as well as Wine Rack retail stories in Canada.

The deal, which is subject to regulatory approvals, is expected to be closed by the end of this year.

Constellation Brands will continue to own Black Velvet Whisky and the associated manufacturing plant in Lethbridge, Alberta, Canada.

Constellation Brands president and CEO Rob Sands said: "In April, we announced plans to explore an initial public offering for a portion of our Canadian wine business as part of our strategy to focus on premium, high margin and high growth brands.

"We seized the opportunity to sell the entire business in a value-enhancing transaction when it presented itself.”

Separately, Constellation has agreed to buy the Charles Smith Wines collection of five wines for about $120m.

The deal includes Kung Fu Girl Riesling, Velvet Devil Merlot, Boom Boom! Syrah, Eve Chardonnay and Chateau Smith Cabernet Sauvignon.

 

With respect to its spirits portfolio, Constellation has completed its previously announced acquisition of High West Distillery.

The purchase includes all of High West's operations and its portfolio of American straight whiskeys.


Image : Constellation Brands headquarters in Victor, New York. Photo : courtesy of DanielPenfield and Wikipedia.