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News Alert: Constellation, Gallo Further Revise Their Billion-Dollar Deal

May 28, 2020

Constellation Brands and E.&J. Gallo are edging closer to completing their billion-dollar deal covering a host of lower-end wine brands, but today the two companies announced that Constellation’s California-based Mission Bell winery will no longer be included.

The removal of the Mission Bell facility is related to an earlier amendment of the deal under which Constellation will be retaining the Cook’s California Champagne and J. Roget American Champagne labels. They were previously among the brands slated to transfer to Gallo.

Excluding Mission Bell, the revised transaction is worth $1.03 billion, of which $250 million is in performance-based earnouts. Still subject to FTC review, the deal is now expected to close before the end of the second quarter. “This move puts us one step closer to finalizing this transaction,” said Constellation CEO Bill Newlands.—Daniel Marsteller

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