Constellation Brands in Accelerated Buyback Agreement

By Matt Grossman

Constellation Brands Inc. is entering an accelerated share-repurchase agreement to buy back $500 million of Class A shares, the alcoholic-beverages company said Wednesday.

Constellation will receive approximately 1.7 million shares on July 2. That figure represents about 80% of the estimated share repurchases under the agreement, based on the June 29 closing price of Constellation stock, the company said.

The shares will be paid for primarily with cash on hand and the transaction will be completed under the company's current share-repurchase authorization, which had about $3.4 billion remaining before the new agreement.

Goldman Sachs & Co. LLC will facilitate the repurchases, Constellation said. The plan will not change Constellation's guidance for adjusted earnings of $10 a share to $10.30 a share in the 2022 fiscal year, the company added.

Write to Matt Grossman at matt.grossman@wsj.com

(END) Dow Jones Newswires

June 30, 2021 09:20 ET (13:20 GMT)

Constellation Brands (NYSE:STZ)
Historical Stock Chart
From Mar 2024 to Apr 2024