Constellation
Brands Completes Acquisition
of
Fortune Brands’ U.S. Wine Business
FAIRPORT,
N.Y., Dec. 17, 2007 –
Constellation Brands, Inc. (NYSE: STZ, ASX: CBR), today announced
it
has completed the acquisition of the Fortune Brands, Inc. U.S. wine portfolio
for a purchase price of $885 million, subject to closing
adjustments. The acquisition includes fine wines such as Clos du
Bois, Wild Horse, Geyser Peak and others, as well as five wineries and vineyards
in some of California’s finest wine growing regions, and an experienced team of
wine business professionals.
“This
acquisition is another significant step
to expand our excellent portfolio of fine wine in the fast-growing super-premium
and luxury segments of the U.S. market,” stated Rob Sands, Constellation Brands
president and chief executive officer. “We are pleased that we have
been able to take advantage of this opportunity to strengthen our position
as
the premium wine leader in the U.S. marketplace and improve our ability to
meet
wine trade-up consumer trends.”
In
connection with this acquisition,
Constellation financed the transaction using net proceeds from its Dec. 5,
2007,
sale of $500 million 8 3/8% Senior Notes due 2014 together with borrowings
under
the revolving portion of the company’s senior credit
facility. Constellation is formulating an integration plan for the
acquired assets and will announce details when the plan is
finalized.
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About
Constellation Brands
Constellation
Brands, Inc. is a leading
international producer and marketer of beverage alcohol in the wine, spirits
and
imported beer categories, with significant market presence in the U.S., Canada,
U.K., Australia and New Zealand. Based in Fairport, N.Y., the company
has more than 250 brands in its portfolio, sales in approximately 150 countries
and operates approximately 60 wineries, distilleries and distribution
facilities. It is the largest wine producer in the world; the largest
wine company in the U.S. based upon sales dollar value, the largest wine
company
in the U.K., Australia and Canada; the second largest wine company in New
Zealand; the largest beer importer and marketer in the U.S. through its Crown
Imports joint venture with Mexico’s Grupo Modelo; and the third largest spirits
company in the U.S. Constellation Brands is an S&P 500 Index and
Fortune 500® company. Major brands in the company’s portfolio include
Corona Extra, Black Velvet Canadian Whisky, the SVEDKA vodka line, Robert
Mondavi wines, Ravenswood, Blackstone, Hardys, Banrock Station, Nobilo, Kim
Crawford, Inniskillin, Jackson-Triggs and Arbor Mist. To learn more
about Constellation Brands and its product portfolio visit the company’s Web
site at www.cbrands.com.
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