Constellation Brands (STZ) Sells Canadian Wine Operating Unit in C$1.03B Deal

October 17, 2016 8:18 AM EDT

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Ontario Teachers' Pension Plan (Ontario Teachers') announced the acquisition of Constellation Brands Canada, the Canadian operation of Constellation Brands, for approximately $1.03 billion (CDN). The transaction is expected to close before the end of the calendar year.

Constellation Brands is a publicly traded, international producer and marketer of beer, wine and spirits with operations in the U.S., Canada, Mexico, New Zealand and Italy. The Canadian wine business of Constellation Brands is the market leader in Canada with approximately three times the market share of its closest competitor and 7 of the top 20 wine brands in the Canadian market.

"Constellation Brands Canada is an ideal addition to our Consumer Portfolio," said Jane Rowe, Senior Vice-President, Private Capital. "The company is already the undisputed market leader in the Canadian wine industry and has excellent potential for continued growth and value creation."

Constellation Brands Canada is headquartered in Mississauga and operates three commercial wineries, five estate wineries, and 163 Wine Rack stores throughout Ontario. Its diverse portfolio of domestic and international wines includes such well-known names as Inniskillin, Jackson-Triggs, Kim Crawford, Robert Mondavi, Ruffino, Sawmill Creek and Wallaroo Trail.

"We look forward to partnering with Constellation's impressive management team and President and CEO Jay Wright to capitalize on long-term growth trends in the wine industry," stated Jane Rowe. "Constellation delivers stable and predictable cash flows and provides us with an excellent investment platform in this growth industry."

"Our Canadian management team is excited about working with Ontario Teachers' to take our business vision to the next level," said Jay Wright. "Their financial commitment and considerable expertise in helping their portfolio companies achieve meaningful strategic market advantages set the stage for an exciting partnership."

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