Alert: Constellation Sells 8 Wine Brands
Its official: Constellation announced today it has agreed to sell several brands to U.S. private equity firm Eight Estates Fine Wines (doing business as Ascentia Wine Estates), based in Sonoma, CA for up to $234 million. Geyser Peak, Buena Vista, Gary Farrell, Atlas Peak and XYZin in California, which were acquired from Fortune Brands in December 2007; Columbia Winery and Covey Run (including Sunnyside winery) in Washington State; and Ste. Chapelle in Idaho, all acquired in 2001 from Corus Brands. Collectively, these brands represented approximately one million cases of wine sold in calendar 2007.
Under terms of the agreement, Constellation received $209 million in cash, and could receive up to an additional $25 million in payments if certain objectives are achieved by the buyer. Constellation Brands will use the proceeds from the sale to reduce borrowings.
Ascentia is a partnership including Jim Debonis, the former head of production at Simi Winery and most recently coo at Beam Wine Estates, W.J. Deutsch & Sons, one of the largest marketers of wine in the U.S., and GESD Capital Partners, a San Francisco-based private equity firm that owns bakeries around the country, including Boudin Bakery..
Rumors of the deal have surfaced for weeks. When contacted by WSD last week, Constellation spokesman Mike Martin declined to comment.
"Sale of these assets will aid in streamlining Constellation's U.S. wine portfolio by eliminating brand duplication and excess production capacity," said Rob Sands, Constellation Brands president and chief executive officer. "We feel our customers and consumers are well served by our extensive California wine portfolio and by the Hogue Cellars brand produced at its Prosser, Wash., winery. This transaction also provides cash to further reduce our borrowings and demonstrates our commitment to improve return on invested capital."
Click here to read our coverage of the news last week.
Stay tuned for more...
Until tomorrow, Megan
“Nothing is impossible. Some things are just less likely than others.”
Jonathan Winters
--------- Sell Day Calendar ----------
Today's Sell Day: 7
Sell days this month: 21
Sell days this month last year: 21
This month ends on a: Mon.
This month last year ended on a: Fri.
YTD sell days Over/Under: 0
WINE & SPIRITS DAILY
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Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
Under terms of the agreement, Constellation received $209 million in cash, and could receive up to an additional $25 million in payments if certain objectives are achieved by the buyer. Constellation Brands will use the proceeds from the sale to reduce borrowings.
Ascentia is a partnership including Jim Debonis, the former head of production at Simi Winery and most recently coo at Beam Wine Estates, W.J. Deutsch & Sons, one of the largest marketers of wine in the U.S., and GESD Capital Partners, a San Francisco-based private equity firm that owns bakeries around the country, including Boudin Bakery..
Rumors of the deal have surfaced for weeks. When contacted by WSD last week, Constellation spokesman Mike Martin declined to comment.
"Sale of these assets will aid in streamlining Constellation's U.S. wine portfolio by eliminating brand duplication and excess production capacity," said Rob Sands, Constellation Brands president and chief executive officer. "We feel our customers and consumers are well served by our extensive California wine portfolio and by the Hogue Cellars brand produced at its Prosser, Wash., winery. This transaction also provides cash to further reduce our borrowings and demonstrates our commitment to improve return on invested capital."
Click here to read our coverage of the news last week.
Stay tuned for more...
Until tomorrow, Megan
“Nothing is impossible. Some things are just less likely than others.”
Jonathan Winters
--------- Sell Day Calendar ----------
Today's Sell Day: 7
Sell days this month: 21
Sell days this month last year: 21
This month ends on a: Mon.
This month last year ended on a: Fri.
YTD sell days Over/Under: 0
WINE & SPIRITS DAILY
Subscribe or check back issues at: www.winespiritsdaily.com
Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
posted at 5:18 AM
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