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Subsequent Events
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3 Months Ended |
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May 31, 2012
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| Subsequent Events [Abstract] | |
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SUBSEQUENT EVENTS:
Crown Imports –
In June 2012, the Company signed a definitive agreement to acquire the remaining 50% equity interest in Crown Imports for approximately $1.85 billion (the “Crown Acquisition”). Crown Imports has the exclusive right to import, market and sell primarily Modelo's Mexican beer portfolio (the “Modelo Brands”) in the 50 states of the U.S., the District of Columbia and Guam.
The Company has a fully committed bridge financing in place to fund the Crown Acquisition and expects permanent financing to consist of a combination of revolver borrowings and a new term loan under the Company's existing senior credit facility, combined with the issuance of senior notes. The Company currently expects to complete the Crown Acquisition, subject to satisfaction of limited closing conditions, in the first quarter of calendar 2013. The Company cannot guarantee, however, that this transaction will be completed upon the agreed upon terms, or at all. The results of operations of Crown Imports will be reported in the Crown Imports segment and will be included in the Consolidated Statements of Comprehensive (Loss) Income from the date of acquisition. The Crown Acquisition is expected to be significant and the Company expects it to have a material impact on the Company's future results of operations, financial position and cash flows.
Mark West Assets –
In June 2012, the Company signed a definitive agreement to acquire the Mark West wine brand for approximately $160 million, subject to customary closing conditions and adjustments. The transaction includes the acquisition of the Mark West trademark, related inventories and certain grape supply contracts (the “Mark West Assets”). The transaction is expected to close in July 2012. The results of operations of the Mark West Assets will be reported in the Constellation Wines and Spirits segment and will be included in the Consolidated Statements of Comprehensive (Loss) Income from the date of acquisition.
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