Constellation Brands has announced that it has revised the original agreement with E. & J. Gallo Winery to divest a portion of its wine and spirits portfolio.
The revised agreement will exclude the Mission Bell facility and certain related real estate, equipment, contracts, and employees from the deal.
The transaction, subject to closing adjustments, is now worth approximately $1.03 billion.
The revised deal, expected to close in the second quarter of 2021, is subject to review and clearance from the Federal Trade Commission, the company added.
One Step Closer
President and chief executive officer of Constellation Brands, Bill Newlands said, “This move puts us one step closer to finalising this transaction. We continue to work in collaboration with Gallo to satisfy all FTC obligations, and both companies remain fully committed to closing the transaction.
“Our wine and spirits transformation strategy continues to gain traction and we look forward to closing this transaction in the coming months.”
The Corona-maker also expects to close a separate but related transaction with Gallo which involves the divestiture of the New Zealand-based Nobilo Wine brand and related assets for $130 million by the end of the second quarter of 2021.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.