Constellation Brands (NYSE:STZ)
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6 Months : From Oct 2019 to Apr 2020
By Colin Kellaher
Constellation Brands Inc. (STZ) Thursday said it agreed to sell its New Zealand-based Nobilo Wine brand and related assets to E. & J. Gallo Winery Inc. for $130 million.
The Victor, N.Y., beer and spirits company said the transaction is separate from the revised larger deal it reached with Gallo aimed at addressing competitive concerns raised by the U.S. Federal Trade Commission.
Constellation said it expects to complete the sale of the Nobilo brand, which had net sales of nearly $40 million on volume of roughly 550,000 cases for the 12 months ended Aug. 31, in the first half of fiscal 2021.
In total, the businesses privately held Gallo is acquiring in both transactions had net sales of $860 million on volume of about 22 million cases for the same 12-month period, Constellation said.
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(END) Dow Jones Newswires
December 12, 2019 10:36 ET (15:36 GMT)
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