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News
Constellation to buy back US$1bn shares
The board of US drinks group Constellation Brands has approved a new US$1 billion share buyback programme.
Constellation Brands has authorised a new share repurchase programme
The programme will see the firm make effective use of up to US$1 billion of its common stock over time.
Constellation plans to execute the new scheme – which is in addition to Constellations’ current US$1 billion share repurchase programme – “opportunistically” in the future subject to market conditions.
The news comes after the firm achieved ‘Investment Grade’ status, confirming its high credit rating, with Fitch and S&P Credit Rating Agencies.
“We are pleased with our new Investment Grade status, which has been driven by our ability to continue to generate strong earnings and operating cash flow,” said David Klein, executive vice president and chief financial officer, Constellation Brands.
“This provides us with the flexibility to be opportunistic with future share repurchases while remaining committed to our 3.5x targeted leverage ratio.”
Last month Constellation Brands Inc. acquired craft whiskey producer High West Distillery for around US$160 million, at the same time reporting strong sales for the second quarter of its financial year.
The firm then went on to acquire a minority stake in The Bardstown Bourbon Company.