Constellation Brands Acquires Washington Wine Collection, Sheds Canadian Business

Constellation Brands Inc (STZ) said on Monday it acquired Charles Smith Wines collection of five “super and ultra premium wines” for $120 million while unloading its Canadian wine business.

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

Charles Smith Wines specializes in Washington State products and was named winemaker of the year in 2014 by Wine Enthusiast. The transaction is expected to close this month. Bill Newlands, the president of the wine and spirits division at Constellation, said the acquisition helps strengthen the company’s wine portfolio.

Constellation said in a separate note that it will sell its Canadian wine business to Ontario Teachers’ Pension Plan, the largest single-profession pension plan in Canada, in a deal worth C$1.03 billion ($783.7 million). The deal includes the company’s Jackson-Triggs and Inniskillin wineries, vineyards, offices and facilities and its Wine Rack retail stories. The transaction is expected to close by the end of the year.

The company will receive cash, payment of outstanding debt and about C$750 million. Constellation expects to recognize an after-tax gain for fiscal 2017. Constellation also said it completed its previously announced High West Distillery acquisition.

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