Constellation confirmed that it had agreed to sell its Canadian business for C$1bn (US$750,000,000) to Ontario Teachers’ Pension Plan. The sale includes Inniskillin and Jackson-Triggs wine brands and wineries, as well as Wine Rack retail stories in Canada.
The move to sell up is part of Constellation’s plan to re-focus around premium and high end US wine brands aimed at millennials, alongside a burgeoning beer arm and small-scale spirits division.
‘We seized the opportunity to sell the entire business in a value-enhancing transaction when it presented itself,’ said Rob Sands, president and chief executive officer, Constellation Brands. The deal is still subject to regulatory approval.
It’s 10 years since Constellation expanded into Canada in a big way, buying the country’s then-biggest wine company, Vincor, in a deal worth C$1.6 billion.
Constellation, which owns Robert Mondavi, Ravenswood and Kim Crawford, made more sales from beer than from wine in the first half of its current financial year.
source Decanter
