Constellation
Strengthens Its Position in the Highest End of the U.S. Beer Market
with New Craft Platform
VICTOR, N.Y. and SAN DIEGO,
Calif., Nov. 16, 2015 - Constellation Brands (NYSE: STZ and STZ.B), a
leading beverage alcohol company, today announced an agreement to
acquire San Diego-based Ballast Point Brewing & Spirits.
Ballast Point is one of the fastest growing craft beer companies in
the U.S. with a beer portfolio that includes more than 40 different
styles of beer, led by its popular Sculpin IPA and Grapefruit
Sculpin IPA. The partnership with Ballast Point provides a
high-growth premium platform that will enable Constellation to
compete in the fast-growing craft beer segment, further
strengthening its position in the highest end of the U.S. beer
market.
Ballast Point started in 1996 as a small group of
home brewers and remains dedicated to the art of making better
quality craft beer. Ballast Point will continue to operate as a
stand-alone company with its existing management team and employees
running the day-to-day operations. The company is one of the most
successful and respected craft beer companies in the country, with
an expertise in brewing the most premium, highest quality award
winning products, and a grassroots approach to innovation that
engages beer lovers and home brewers in the process. The Ballast
Point team will continue to build on its successful expansion
across the U.S., and will now have access to Constellation's strong
financial position and willingness to invest in growth.
"We started this business nearly 20 years ago with
a vision to produce great beer that consumers love and to do it the
right way," said Jack White, founder of Ballast Point Brewing &
Spirits. "To achieve that vision, we needed to find the right
partner. The team at Constellation shares our values,
entrepreneurial spirit and passion for beer, and has a proven track
record of helping successful premium brands reach the next level of
growth and scale."
"We believe in the vision that Jack and his team
have created and we're excited to welcome Ballast Point, one of the
most respected craft brewers in the country, to the Constellation
Brands family," said Rob Sands, chief executive officer,
Constellation Brands. "Along with imports, craft beer is a key
driver of growth and premiumization within the beer industry, with
craft doubling its share of the U.S. beer market in the last five
years. Ballast Point has certainly been a key driver of that
growth. Their business philosophy and entrepreneurial spirit
perfectly align with our culture and we look forward to
strengthening our position in the high-end beer segment with what
is arguably the most premium major brand in the entire craft beer
business."
Ballast Point is on pace to sell nearly 4 million
cases in calendar 2015, which would represent growth of more than
100 percent versus calendar 2014. Net sales for calendar 2015 are
expected to approximate $115 million. Volume and net sales growth
from calendar 2012 to calendar 2014 averaged over 80 percent.
Ballast Point employs more than 500 employees, produces beer in
four facilities in the San Diego, CA area, and sells its beer
in over 30 states.
Constellation Brands plans to purchase Ballast
Point Brewing & Spirits for approximately $1 billion. The
purchase price values the acquisition multiple of the projected
calendar 2016 Ballast Point EBITDA in the mid-to-high teens range.
Constellation estimates that on a comparable basis (1), the
acquisition is expected to be neutral to diluted earnings per share
for fiscal 2016 and $0.05 to $0.06 accretive for fiscal 2017. The
transaction will be financed with cash and debt, and is expected to
close by the end of calendar year 2015, subject to customary
closing conditions.
(1)
Comparable basis excludes transaction and other acquisition-related
costs.
About Constellation
Brands
Constellation Brands (NYSE: STZ and STZ.B) is a leading
international producer and marketer of beer, wine and spirits with
operations in the U.S., Canada, Mexico, New Zealand and Italy. In
2014, Constellation was one of the top performing stocks in the
S&P 500 Consumer Staples Index. Constellation is the number
three beer company in the U.S. with high-end, iconic imported
brands including Corona Extra, Corona Light, Modelo Especial, Negra
Modelo and Pacifico. Constellation is also the world's leader in
premium wine, selling great brands that people love including
Robert Mondavi, Clos du Bois, Kim Crawford, Rex Goliath, Mark West,
Franciscan Estate, Ruffino and Jackson-Triggs. The company's
premium spirits brands include SVEDKA Vodka and Black Velvet
Canadian Whisky.
Based in Victor, N.Y., the company believes that
industry leadership involves a commitment to brand-building, our
trade partners, the environment, our investors and to consumers
around the world who choose our products when celebrating big
moments or enjoying quiet ones. Founded in 1945, Constellation has
grown to become a significant player in the beverage alcohol
industry with more than 100 brands in its portfolio, sales in
approximately 100 countries, about 40 facilities and approximately
7,700 talented employees. We express our company vision: to elevate life with every glass raised. To learn more,
visit www.cbrands.com.
About Ballast Point
What started in 1996 as a small group of home brewers who simply
wanted to make great beer evolved into a team of adventurers known
today as Ballast Point. From bringing a hoppy twist to a porter, or
adding four types of malt to its amber ale, to creating a
breakthrough gold medal winning IPA, the San Diego-based company is
known for adding its own touch and asking if there's a better way.
Today as an internationally recognized leader in the craft brewing
and spirits industry, the company makes over 40 styles of beer.
Forward-Looking
Statements
This news release contains forward-looking statements. All
statements other than statements of historical fact are
forward-looking statements. The word "expect" and similar
expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain such
identifying words. These statements may relate to business
strategy, future operations, prospects, plans and objectives of
management, as well as information concerning expected actions of
third parties. All forward-looking statements involve risks
and uncertainties that could cause actual results to differ
materially from those set forth in, or implied by, such
forward-looking statements. The forward-looking statements
are based on management's current expectations should not be
construed in any manner as a guarantee that such results will in
fact occur or will occur on the timetable contemplated
hereby. The transaction between Constellation Brands and
Ballast Point Brewing & Spirits is subject to the satisfaction
of certain closing conditions, including receipt of any necessary
regulatory approvals. There can be no assurance that any
transaction between Constellation Brands and Ballast Point Brewing
& Spirits will occur or will occur on the timetable
contemplated hereby. All forward-looking statements speak
only as of the date of this news release and Constellation Brands
undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
In addition to the risks and uncertainties of
ordinary business operations, the forward-looking statements
contained in this news release are subject to other risks and
uncertainties, including completion of the announced transaction;
the accuracy of all projections; the ability to achieve volume and
net sales growth estimates and the benefits of the transaction may
vary due to different financial results from those anticipated and
the timeframe in which achieved will depend on actual financial
performance; and other factors and uncertainties disclosed from
time-to-time in Constellation Brands, Inc.'s filings with the
Securities and Exchange Commission, including its Annual Report on
Form 10-K for the fiscal year ended February 28, 2015, which could
cause future performance to differ from current expectations.
CONTACTS
Media
Cheryl Gossin: 585-678-7191
Amy Martin: 585-678-7141
Investor Relations
Patty Yahn-Urlaub: 585-678-7483
Bob Czudak: 585-678-7170
Atlantic-Factsheet_v2
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Constellation Brands Inc via Globenewswire
HUG#1967065
Constellation Brands (NYSE:STZ)
Historical Stock Chart
From Apr 2024 to May 2024
Constellation Brands (NYSE:STZ)
Historical Stock Chart
From May 2023 to May 2024