UPDATE: Constellation Brands (STZ) Tops Q1 EPS by 1c; Reaffirms Outlook; to Acquire All of Crown Imports for $1.85B

June 29, 2012 7:34 AM EDT
(Updated - June 29, 2012 7:37 AM EDT)

Constellation Brands (NYSE: STZ) reported Q1 EPS of $0.40, $0.01 better than the analyst estimate of $0.39. Revenue for the quarter came in at $635 million versus the consensus estimate of $645.5 million.

Constellation Brands reaffirmed FY2013 guidance.

Constellation has signed a definitive agreement with Anheuser-Busch InBev SA/NV (NYSE: BUD) to purchase the remaining 50 percent interest in Crown Imports LLC as AB InBev completes its proposed acquisition of Modelo. The purchase price is $1.85 billion and represents 50 percent of a multiple of approximately 8.5 times Crown's EBIT. The transaction, which is subject to regulatory approval, is expected to close during the first quarter of calendar 2013.

Under the terms of the transaction, Constellation Brands and Crown will have complete, independent control of distribution, marketing and pricing for all Modelo brands in the U.S., while AB InBev will ensure continuity of supply, quality of products and the ability to introduce innovations. The new importation agreement will be perpetual and provides AB InBev with the right, but not the obligation, to exercise a call option every 10 years, subject to regulatory approval, at a multiple of 13 times Crown's EBIT from the Modelo brands.

For earnings history and earnings-related data on Constellation Brands (STZ) click here.


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