Constellation agrees sale of Australian and UK business

Constellation Brands, the world’s biggest winemaker, has confirmed it is to sell 80% of its Australian and British wine business to Champ Private Equity of Sydney in a deal valued at around AUD$290 million.

The transaction will include almost all of Constellation’s Australian, UK and South African brands, wineries and vineyards, as well as its 50% stake in Matthew Clark.

The transaction, which is expected to close by the end of January 2011, is subject to customary and routine closing conditions.

Constellation expects to use the net proceeds to reduce borrowings.

Alan Lodge, 23.12.2010