Constellation Brands Announces Accelerated Stock Buyback
June 30 2021 - 8:50AM
Constellation Brands, Inc. (NYSE: STZ and STZ.B), a leading
beverage alcohol company, announced today that it has entered into
an accelerated share repurchase (“ASR”) agreement with Goldman
Sachs & Co. LLC to repurchase $500.0 million of its
Class A common stock (“Common Stock”). Under the ASR
agreement, Constellation will receive approximately 1.7 million
shares on July 2, 2021, representing approximately 80% of the
expected share repurchases under the ASR agreement, based on the
company’s June 29, 2021 closing stock price of $230.98. The
repurchased shares will become treasury shares.
The specific number of shares to be repurchased in the
transaction is generally based upon the volume-weighted-average
price of the Common Stock during the term of the ASR agreement,
less a discount and is expected to be completed no later than
October 2021. The purchase price for shares repurchased in the
accelerated share repurchase transaction will be paid primarily
with cash on hand and will be completed under the company’s current
share repurchase authorization, which currently has approximately
$3.4 billion in authorization remaining before giving effect to the
ASR.
“This accelerated share repurchase transaction demonstrates our
strong commitment to maximizing shareholder value, and aligns with
our commitment to return $5 billion to shareholders through fiscal
2023,” said Constellation Brands President and Chief Executive
Officer Bill Newlands.
This ASR agreement will not change the fiscal 2022 EPS guidance
provided in our news release of earlier today and constitutes the
$500 million incremental share repurchase referenced in that news
release.
FORWARD-LOOKING STATEMENTSThis news release
contains forward-looking statements. All statements other than
statements of historical fact are forward-looking statements. The
word “expect” and similar expressions are intended to identify
forward-looking statements, although not all forward-looking
statements contain such identifying words. These statements may
relate to business strategy, future operations, prospects, plans,
and objectives of management, as well as information concerning
expected actions of third parties. All forward-looking statements
involve risks and uncertainties that could cause actual results to
differ materially from those set forth in, or implied by, such
forward-looking statements.
The forward-looking statements are based on management's current
expectations and should not be construed in any manner as a
guarantee that such results will in fact occur or will occur on any
contemplated timetable. All forward-looking statements speak only
as of the date of this news release and Constellation Brands
undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
ABOUT CONSTELLATION BRANDSAt Constellation
Brands (NYSE: STZ and STZ.B), our mission is to build brands that
people love because we believe sharing a toast, unwinding after a
day, celebrating milestones, and helping people connect, are Worth
Reaching For. It’s worth our dedication, hard work, and the bold
calculated risks we take to deliver more for our consumers, trade
partners, shareholders, and communities in which we live and work.
It’s what has made us one of the fastest-growing large CPG
companies in the U.S. at retail, and it drives our pursuit to
deliver what’s next.
Today, we are a leading international producer and marketer of
beer, wine, and spirits with operations in the U.S., Mexico, New
Zealand, and Italy. Every day, people reach for our high-end,
iconic imported beer brands such as Corona Extra, Corona Light,
Corona Premier, Modelo Especial, Modelo Negra, and Pacifico, and
our high-quality premium wine and spirits brands, including the
Robert Mondavi Brand Family, Kim Crawford, Meiomi, The Prisoner
Brand Family, SVEDKA Vodka, Casa Noble Tequila, and High West
Whiskey.
But we won’t stop here. Our visionary leadership team and
passionate employees from barrel room to boardroom are reaching for
the next level, to explore the boundaries of the beverage alcohol
industry and beyond. Join us in discovering what’s Worth Reaching
For.
To learn more, follow us on Twitter @cbrands and visit
www.cbrands.com.
MEDIA CONTACTS |
INVESTOR RELATIONS CONTACTS |
Mike McGrew 773-251-4934 /
michael.mcgrew@cbrands.comAmy Martin 585-678-7141 /
amy.martin@cbrands.com |
Patty Yahn-Urlaub 585-678-7483 /
patty.yahn-urlaub@cbrands.comMarisa Pepelea 312-741-2316 /
marisa.pepelea@cbrands.com |
A downloadable PDF copy of this news release can be found
here: http://ml.globenewswire.com/Resource/Download/ce85c7b0-6d8c-4aea-8a0f-0f9b1efc546c
Constellation Brands (NYSE:STZ)
Historical Stock Chart
From Mar 2024 to Apr 2024
Constellation Brands (NYSE:STZ)
Historical Stock Chart
From Apr 2023 to Apr 2024