Constellation Brands, E. & J. Gallo Winery Sign Consent Order With FTC
Constellation Brands and E. & J. Gallo Winery have signed an agreement containing a consent order with the Bureau of Competition of the US Federal Trade Commission (FTC), regarding Gallo’s pending acquisition of a portion of Constellation’s wine and spirits portfolio.
The deal, priced at approximately $1.03 billion (€870 million), also includes certain related facilities of Constellation Brands located in California, New York, and Washington State.
Final Stages Of Review
The proposed consent order marks the final stage in the FTC review process and is still subject to review and approval by the FTC Commissioners, the company said in its statement.
If approved by the FTC Commissioners, Constellation and Gallo will be able to complete the sale under the terms of the second amended and restated asset purchase agreement, announced in May of this year.
Constellation Brands added that it expects to close the deal in the fourth quarter of its financial year as the FTC generally provides final reviews within 30 to 45 days.
The spirits giant also expects to close a separate but related transaction with Gallo to divest the New Zealand-based Nobilo Wine brand and related assets for $130 million (€110.3 million).
It is also in the process of completing its deal with Sazerac to divest the Paul Masson Grande Amber Brandy brand, related inventory, and interests in certain contracts for approximately $255 million (€216.3 million) by the end of the fourth quarter.