Report: Constellation Considering Sale Of Wine Brands Totaling Up To $3 BillionOctober 23, 2018
With its beer business booming and its wine portfolio making a move toward higher price points, Constellation Brands is reportedly considering offloading a number of wine brands in a sale valued at up to $3 billion.
Citing multiple unnamed sources, Reuters reported late yesterday that Constellation has hired Goldman Sachs to explore the potential divestiture of brands including Clos du Bois, Mark West, Arbor Mist, and Cooks. The brands in question have total 12-month earnings before interest, tax, depreciation and amortization of more than $260 million, according to the report.
The news comes as Constellation reshapes its wine portfolio to reflect the market trend toward higher-priced bottles. Clos du Bois and Mark West both sell in the $12-$15 range, while Arbor Mist and Cooks are in the below $10 segment. Last week, Constellation named industry veteran Bill Newlands as its incoming CEO, with current chief executive Rob Sands slated to become executive chairman next March.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.
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