Ongoing Coverage:
Economy
6:11 pm
Wed April 10, 2013

Constellation Closing in on "Game Changing" Deal

Constellation Brands announced today it has nearly completed a deal in which it will acquire the remaining 50-percent interest in Crown Imports, and purchase a state-of-the-art brewery in Mexico. CEO Rob Sands says they'll also acquire the the perpetual brand rights for Corona and all other Modelo brands in the U.S.

He says the deal marks the most transformational acquisition in Constellation's history, calling it a "game changer," and it will allow the company to nearly double its sales, diversify its profit stream, and significantly enhance earnings and free cash flow.

The deal is not reflected in fourth quarter earnings which were also released Wednesday.

Constellation earned 81.7-million dollars, or 43 cents a share in the quarter. That's down from 103-million, or 51-cents a share a year ago.