Constellation Sells Paul Masson Brandy To Sazerac For $255 MillionJune 25, 2020
Constellation has agreed to sell its Paul Masson Grande Amber Brandy to Sazerac in a deal worth $255 million. According to Impact Databank, Paul Masson was up 1.5% to 2 million cases in the U.S. last year. The deal remains subject to certain purchase price and closing adjustments, requires FTC review and clearance, and is expected to close by the end of August.
Sazerac continues to be an aggressive acquirer in the spirits business. In recent weeks, the company also agreed to acquire the Early Times, Canadian Mist, and Collingwood whisk(e)y brands from Brown-Forman for an undisclosed sum. Those brands account for more than 1.4 million cases.
Meanwhile, Constellation says it’s on track to sell its Nobilo wine brand from New Zealand to E.&J. Gallo for $130 million, also subject to closing adjustments and scheduled to close by the end of August. Nobilo has volume of about 550,000 cases, net sales of $40 million, and gross profit less marketing of $19 million. The company’s planned $1.03 billion sale of a range of other lower-priced wine brands to Gallo is still pending and requires FTC clearance, but is also targeted to close by the end of August.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.