Alert: Constellation in Negotiations to Sell
According to several sources, Constellation is in negotiations to sell the following wine brands: Geyser Peak (recently acquired from Fortune Brands), Gary Farrell, Buena Vista Carneros, Atlas Peak, Covey Run, Ste. Chapelle & Columbia Winery. The purchase price is $220-$225 million.
When Constellation reorganized its U.S. wine business in January, it reportedly decided it was time to shed these brands. Details of the sale and the group acquiring the wineries are not yet confirmed. Jim DeBonis, former head of production at Simi Winery and most recently coo at Beam Wine Estates, is reportedly partnering and getting the money from GESD in San Francisco, which owns Boudin Bakery.
Wine & Spirits Daily heard the rumors earlier this week but couldn’t confirm them. When contacted by WSD, a spokesman at Constellation said: “It is our policy not to comment on rumors or speculation.”
The deal has been going on for weeks and is expected to close as early as today or Monday.
Recall that Constellation purchased Clos du Bois (a huge brand), Geyser Peak, Wild Horse, Buena Vista Carneros and Gary Farrell, as well as the associated vineyards, winemaking assets and sales organization from Fortune in November. The purchase price was $885 million
ACQUISITIONS ON THE HORIZON. At Constellation’s Investor Day last week, ceo Rob Sands said the company is interested in buying more wine brands, but not beer or spirits:
“We’re not that interested in beer acquisitions. Spirits are pretty over-priced right now on our take. There have been some good assets for sale but we don’t see you can generate a return.”
“In wine there will be opportunities for acquisition for selected brands and acquisitions on a global basis...it still remains a highly fragmented category...not real big acquisitions in the vein of Mondavi, Vincor or Hardy because there aren’t any companies like that left...perhaps one or two but none for sale...but we will probably selectively fill in that portfolio will smaller acquisitions...geographical or gap filling,” he continued.
Stay tuned for more...
Until later,
Megan
When Constellation reorganized its U.S. wine business in January, it reportedly decided it was time to shed these brands. Details of the sale and the group acquiring the wineries are not yet confirmed. Jim DeBonis, former head of production at Simi Winery and most recently coo at Beam Wine Estates, is reportedly partnering and getting the money from GESD in San Francisco, which owns Boudin Bakery.
Wine & Spirits Daily heard the rumors earlier this week but couldn’t confirm them. When contacted by WSD, a spokesman at Constellation said: “It is our policy not to comment on rumors or speculation.”
The deal has been going on for weeks and is expected to close as early as today or Monday.
Recall that Constellation purchased Clos du Bois (a huge brand), Geyser Peak, Wild Horse, Buena Vista Carneros and Gary Farrell, as well as the associated vineyards, winemaking assets and sales organization from Fortune in November. The purchase price was $885 million
ACQUISITIONS ON THE HORIZON. At Constellation’s Investor Day last week, ceo Rob Sands said the company is interested in buying more wine brands, but not beer or spirits:
“We’re not that interested in beer acquisitions. Spirits are pretty over-priced right now on our take. There have been some good assets for sale but we don’t see you can generate a return.”
“In wine there will be opportunities for acquisition for selected brands and acquisitions on a global basis...it still remains a highly fragmented category...not real big acquisitions in the vein of Mondavi, Vincor or Hardy because there aren’t any companies like that left...perhaps one or two but none for sale...but we will probably selectively fill in that portfolio will smaller acquisitions...geographical or gap filling,” he continued.
Stay tuned for more...
Until later,
Megan
posted at 8:41 AM
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