CONSTELLATION ENTERS BRITISH J-V

Constellation announced today it has sold half of its Matthew Clark wholesale business by entering into a joint-venture with English-based Punch Taverns. Under the agreement, Constellation Europe and Punch Taverns are both 50% owners of Matthew Clark, the UK’s largest alcoholic beverage wholesaler.

Matthew Clark will supply wines and spirits to some Punch Taverns pubs, while also becoming the preferred supplier to the remaining Punch pubs.

"Given the importance of the U.K. on-premise drinks business, this joint venture helps assure that Matthew Clark, its customers and, most important, consumers can benefit from distribution efficiency gains and expanded beverage offerings. We believe this collaboration will establish a new benchmark for wholesale drinks distribution in the U.K. and it should result in additional long-term growth for Matthew Clark," said Rob Sands, president and coo of Constellation.

Although terms of the agreement were not disclosed, STZ expects to receive about $168 million of cash proceeds from the j-v.