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Constellation Reportedly Makes Offer For Brown-Forman

May 23, 2017

Constellation Brands has reportedly made an offer for Brown-Forman, in what would be a blockbuster industry deal. According to CNBC, who cited several people with knowledge of the matter, Brown-Forman responded that it was not interested in a deal, but did refer the offer to its board.

In its most recent fiscal year, Brown-Forman had sales of $4 billion and operating income of $1.5 billion. Its enormous whiskey stable—led by Jack Daniel’s, Woodford Reserve and others—is doubtless attractive to potential acquirers given the U.S. market’s American whiskey boom. Brown-Forman is majority controlled by fifth-generation owners the Brown family.

With revenues totaling $7.3 billion and operating income of $2.4 billion in its fiscal year through February, Constellation has been one of the most acquisitive players in the drinks industry over the past few years. Recent purchases have included craft brewer Ballast Point, Utah distiller High West, Joe Wagner’s Meiomi wine brand, Washington-based Charles Smith Wines and California’s The Prisoner Wine Company. The company has also been recently named as a potential suitor for Ste. Michelle Wine Estates.

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