Constellation Brands (STZ) Selling its Value Spirits Brands for $334 Million; Updates Guidance

January 12, 2009 9:16 AM EST

Constellation Brands, Inc. (NYSE: STZ) announced it has entered into an agreement to sell its value spirits business to New Orleans-based Sazerac Company, Inc. for $334 million, subject to closing adjustments.

Spirits brands the company is retaining include SVEDKA Vodka, Black Velvet Canadian Whisky and Paul Masson Grande Amber Brandy.

As a result of this transaction, Constellation is divesting more than 40 brands including Barton, Skol, Mr. Boston, Fleischmann's, the 99 schnapps line, the di Amore line, Chi-Chi's pre-mixed cocktail line, Montezuma Tequila, in addition to numerous other brands representing over 600 SKUs.

Constellation Brands is adjusting its fiscal 2009 reported diluted EPS guidance to $0.45 - $0.49, from its previous reported diluted EPS guidance of $0.65 - $0.69. As a result, the company's fiscal 2009 comparable basis diluted EPS guidance remains $1.68 - $1.72, versus consensus of $1.69.

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Constellation Brands, Inc. is a leading international producer and marketer of beverage alcohol in the wine, spirits and imported beer categories.

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