The United States Federal Trade Commission is authorizing Sazerac to purchase Paul Masson Grande Amber Brandy from Constellation Brands for $255 million. The deal to acquire the brand was first announced in June 2020.
The Sazerac purchase includes the Paul Masson Grande Amber Brandy brand, related inventory and interests in certain contracts. The deal is subject to certain closing and post-closing adjustments, and is expected to close this month.
“These agreements represent another step forward in our efforts to transform our wine and spirits business,” said Bill Newlands, president and chief executive officer at Constellation Brands, at the time of the initial announcement. “Thanks to the continued hard work of our Constellation team members, together with our distributor and retailer partners, our strategy continues to gain momentum. We look forward to closing these transactions in the coming months.”
The news of Sazerac’s purchase of Paul Masson comes on the heels of the announcement that Constellation has sold more than 30 of its wine brands to E&J Gallo. The deal is valued at around US$810m, comprising approximately $560m in cash paid at the closing of the transaction with a potential payment of up to $250m dependent on brand performance. The closing of the agreement between Gallo and Constellation was approved by the Federal Trade Commission on December 23, 2020.
“The closing of this transaction represents our company’s long-term commitment to the wine industry,” said Chief Executive Officer, Ernest J. Gallo. He added, “We are pleased to welcome the new employees joining the Gallo family.”
Svedka Vodka, High West Whiskey and Casa Noble Tequila make up the remainder of Constellation Brand’s
“The closing of these deals positions our wine and spirits business for accelerated revenue growth and operating margin performance going forward,” said Newlands. “We continue to see the staying power of consumer-driven premiumisation trends and these moves align with our vision of building a winning portfolio of bold and distinctive higher-end brands.”