Constellation Brands Sells Canadian Wine Business For C$1.03 Billion
Constellation Brands has agreed to sell its Canadian wine business unit to Ontario Teachers’ Pension Plan, the largest single-profession pension plan in Canada, for C$1.03 billion (US$786 million). The transaction, which includes Canadian wine brands such as Jackson-Triggs and Inniskillin, wineries, vineyards, offices, facilities, and Wine Rack retail stores is subject to regulatory approval and is expected to close by the end of the calendar year. Constellation Brands will continue ownership of Black Velvet Whisky and the related production facility in Lethbridge, Alberta, Canada.
“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,” explains Rob Sands, president and chief executive of Constellation Brands. “The Canadian wine business is the leader in the Canadian wine market and is a long-term growth opportunity. Ontario Teachers’ Pension Plan is well-respected with a proven track record for supporting and growing their investments, so we know the business will be in good hands.”
To further enhance its US wine portfolio, Constellation Brands has just announced an agreement to acquire the Charles Smith Wines collection of five super and ultra-premium wines for approximately $120 million. With this acquisition, Constellation Brands will solidify its position as the second leading supplier of Washington State wines, gaining a collection of high quality wines that have strong consumer affinity and demand, and have shown double-digit volume growth over the last three years.
Related to its spirits portfolio, Constellation has completed its previously announced High West Distillery acquisition. The acquisition includes all of High West’s operations and its portfolio of distinctive, award-winning and high-end American straight whiskeys. With High West, which has experienced double-digit volume growth year over year for the past three years, Constellation Brands enters the dynamic and profitable high-end craft whiskey segment. Additionally, as part of the company’s venture activity, Constellation recently acquired a minority stake in Bardstown Bourbon Company
