Paul Masson brandy sale gets green light
The US Federal Trade Commission has authorised Sazerac’s US$255 million purchase of Paul Masson Grande Amber Brandy from Constellation Brands.
The divestment includes the Paul Masson Grande Amber Brandy brand, related inventory and interests in certain contracts.
The deal is subject to certain closing and post-closing adjustments, and is expected to close this month (January 2021).
The news comes with the completion of Constellation’s sale of more than 30 wine brands to E&J Gallo, including those priced at US$11 and below per bottle.
The deal is valued at around US$810m, comprising approximately US$560m in cash paid at the closing of the transaction with a potential payment of up to US$250m dependent on brand performance.
Constellation Brands’ remaining spirits portfolio includes Svedka Vodka, High West Whiskey and Casa Noble Tequila.
Bill Newlands, Constellation Brands’ president and chief executive officer, said: “The closing of these deals positions our wine and spirits business for accelerated revenue growth and operating margin performance going forward.
“We continue to see the staying power of consumer-driven premiumisation trends and these moves align with our vision of building a winning portfolio of bold and distinctive higher-end brands.”