Constellation announces acquisition of Prisoner Wine Co for USD$285m to grow wine business
Date£º
2016-04-12 14:06 Source£º
harpers.co.uk Author:
Translator:
Constellation Brands Inc. has announced its purchase Prisoner Wine Co along with is 2016 annual fiscal results, which show strong growth for the rapidly expanding company.
The figures show that the company¡¯s beer portfolio ¨C which includes Corona Extra and Modelo Especial - is responsible for the lion¡¯s share of growth, with a 22% increase from to $661 million to $806 million in the fourth quarter to February 29.
However, with the Prisoner acquisition, it is now looking to develop its wine and spirits division, which already includes Mark West, Robert Mondavi and Svedka Vodka.
In the same quarter, this division increased sales by 7% from $691.1 million to $737.2 million, largely because of the addition of Meiomi Wines which was purchsed for $315 million back in August.
Rob Sands, president and chief executive officer of Constellation Brands, said the new acquisition marks a new focus on replicating their success in the beer category.
He said: ¡°This acquisition [of The Prisoner Wine Company brands] aligns with our portfolio premiumisation strategy, enables us to capitalise on US market trends that favour high-end wine brands and strengthens our position in the dynamic and margin enhancing super-luxury wine category.¡±
For the quarter ending on February 29, the company generated consolidated net sales growth of 14%, with overall profit of $243.4 million, or $1.19 a share.
This is up from last year¡¯s profit during the same quarter reported at $214.6 million, or $1.06 a share.
The Prisoner acquisition from Huneeus Vintners wine company is no less than Constellation¡¯s third purchase in less than a year.
Their fiscal report for 2016 showed promising growth, with the company re-purchasing approximately 246,000 shares of common stock for $34 million during fourth quarter.