Constellation brands completes wine and spirits transactions with e. & j. gallo to focus portfolio on consumer premiumization trends

Victor, n.y., jan. 05, 2021 (globe newswire) -- constellation brands, inc. (nyse: stz and stz.b), a leading beverage alcohol company, announced today that it has closed its transaction with e. & j. gallo winery to divest a portion of constellation's wine and spirits portfolio principally priced at $11 retail and below, including certain related facilities located in california, new york, and washington state. the aggregate transaction price was approximately $810 million, consisting of approximately $560 million in cash paid at closing and the opportunity to receive up to $250 million in earnout payments if brand performance targets are met over a two-year period after closing. the transaction price reflects various adjustments of approximately $220 million related primarily to changes in inventory for which constellation has already received the benefit.
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