VICTOR,
N.Y., Nov. 30, 2009 –
Constellation Brands, Inc. (NYSE: STZ, ASX: CBR), the world’s leading wine
company, announced today that it has entered into an agreement to sell its
Gaymer Cider Company business to C&C Group PLC of Dublin Ireland for £45
million, or approximately $70 million, subject to closing adjustments. The
transaction is expected to close by mid-January
2010.
“The Gaymer cider
business has been a valued and respected part of Constellation’s European
operations for many years,” said Rob Sands, president and chief executive
officer, Constellation Brands. “However, as the company’s strategy has evolved
to focus on premium higher-growth, higher-margin wine, beer and spirits brands,
it made good strategic sense to sell the cider business. Overall, Constellation
continues to pursue opportunities and strategies that promote the simplification
of its international organization, the improvement of efficiencies, return on
invested capital, cash flow and the reduction of costs.”
Constellation
expects that proceeds from the sale will be used to reduce its borrowings. The
sale is expected to result in a nominal gain on the transaction, which will be
excluded from the company’s comparable basis diluted
-more-
-2-
earnings per share
(EPS). The impact of this transaction is expected to be neutral to ongoing
reported basis and comparable basis diluted EPS for fiscal 2010.
As
part of the transaction, C&C will receive all Gaymer cider brands including
Blackthorn Cider, Gaymers Original and Pear Cider, Addlestones and Olde English
Cider along with a production facility and associated warehouses and
distribution facilities. “C&C has a strong track record for growing the
cider and beer brands that they own, which makes this mutually beneficial for
both companies,” said Sands. “I want to thank the cider employees who have
worked tirelessly to make the business profitable and successful and wish them
well into the future.”
Explanations
Reported basis (“reported”) diluted
earnings per share are as reported under generally accepted accounting
principles. Diluted earnings per share on a comparable basis (“comparable”),
exclude acquisition-related integration costs, restructuring charges and unusual
items.
About
Constellation Brands
Constellation
Brands is the world’s leading wine company that achieves success through an
unmatched knowledge of wine consumers paired with storied brands that suit
varied lives and tastes. With a broad portfolio of widely admired premium
products across the wine, beer and spirits categories,
Constellation’s brand portfolio includes Robert Mondavi, Hardys, Clos du Bois,
Blackstone, Arbor Mist, Estancia, Ravenswood, Jackson-Triggs, Kim Crawford,
Corona Extra, Black Velvet Canadian Whisky and SVEDKA Vodka.
Constellation
Brands (NYSE: STZ and STZ.B; ASX: CBR) is an S&P 500 Index and Fortune 1000®
company with more than 100 total brands in our portfolio, sales in about 150
countries and operations in approximately 50 facilities. The company believes
that industry leadership involves a commitment to our brands, to the trade, to
the land, to investors and to different people around the world who turn to our
products when celebrating big moments or enjoying quiet ones. We express this
commitment through our vision: to elevate life with every glass raised. To learn
more about Constellation Brands and its product portfolio visit the company's
web site at www.cbrands.com.
Forward-Looking
Statements
This news release contains
forward-looking statements. The words “anticipate,” “intend,” and
“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 Constellation’s 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. Some of these risks and uncertainties
include factors relating to Constellation's ability to consummate the
transaction and realize expected gains. There can be no assurance
that any transaction between Constellation and C&C Group PLC will occur, or
will occur on the timetable contemplated hereby.
Although Constellation believes the
expectations reflected in the forward-looking statements are reasonable,
Constellation can give no assurance that such expectations will prove to be
correct. All forward-looking statements speak only as of the date of
this news release. Constellation undertakes no obligation
to
-more-
-3-
update or revise
any forward-looking statements, whether as a result of new information, future
events or otherwise.
In addition to risks 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 proposed transaction, receipt of all consideration and accuracy of all
projections; and
|
|
·
|
other factors
and uncertainties disclosed from time to time in the company’s filings
with the Securities and Exchange Commission, including its Annual Report
on Form 10-K for the fiscal year ended Feb. 28, 2009, which could cause
actual future performance to differ from current
expectations.
|
# # #