Constellation Brands Again Revises Sale of Brands to Gallo, New Price About $1.03 Billion

By Josh Beckerman

Constellation Brands Inc., which previously revised a deal to sell some brands to E. & J. Gallo Winery amid concerns raised by the U.S. Federal Trade Commission, has again changed the transaction in connection with the FTC review process.

Constellation said its Mission Bell facility is now excluded from the transaction. The revised agreement was amended to support Constellation's production needs following its decision to retain Cook's California Champagne and J. Roget American Champagne.

The deal is now worth about $1.03 billion, subject to closing adjustments, which includes an earnout of up to $250 million. The adjusted transaction disclosed in December was valued at about $1.1 billion, compared with $1.7 billion for the deal originally announced in April 2019.

Write to Josh Beckerman at josh.beckerman@wsj.com

(END) Dow Jones Newswires

May 28, 2020 19:42 ET (23:42 GMT)

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