News Alert: Heaven Hill To Acquire Black Velvet Canadian Whisky For $266 MillionAugust 12, 2019
Heaven Hill Brands has agreed to acquire Black Velvet Canadian whisky from Constellation Brands for $266 million, subject to regulatory approval. The deal is expected to close in the second half of the year.
The acquisition includes all the distilling operations, aging and bottling facilities, and the remaining portfolio of Canadian whisky brands owned by Constellation, which includes Black Velvet, MacNaughton, McMasters, and others.
The net sales for the brands included in the transaction totaled US$67 million during Constellation’s fiscal year 2019, and the purchase price represents a multiple of gross profit after marketing in the range of eight to nine times.
Black Velvet was down 2.6% to 1.9 million cases in the U.S. in 2018, including flavors, according to Impact Databank. Heaven Hill says the brand fills a gap in its portfolio by substantially expanding sales activities in imported whisky.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.