CONSTELLATION GAINS VINCOR, FINALLY

Constellation and Vincor International made a surprising announcement today. The two companies have issued a $1.31 billion merger agreement, a decision that was reportedly supported by both boards unanimously. The acquisition will play out under a statutory plan of arrangement in Canada under which Constellation will acquire all of Vincor’s issued and outstanding common shares at a cash price of C$36.50. Back in December the Vincor board had reportedly “refused to engage in any dialogue with us regarding our C$35 per share cash proposal,” according to Constellation’s Richard Sands. Vincor also stated they “were open to talk to [Constellation], so long as they gave a firm and fair offer north of C$35.” Well, it looks like Vincor got its wish. "We are pleased that Constellation has offered a value that fully recognizes our strong brands, exceptional workforce and significant international growth opportunities," said Donald Triggs, president and chief of Vincor. Discussions between both boards led to the “conclusion that this is a mutually beneficial transaction,” commented Richards Sands. “Through this combination, Canada will become a core market for Constellation, while adding new and existing brands to our already formidable portfolio in other key markets.” During the press conference, Richard stated that “this deal doesn’t inhibit our ability to do further transactions.”