Constellation Brands, Inc. said it and E. & J. Gallo Winery signed a proposed consent order that, if accepted by the FTC Commissioners, would allow Constellation to complete the sale of certain brands priced under $11 a bottle to Gallo.
The transaction price is about $1.03 billion, subject to closing adjustments, of which $250 million is an earnout if brand performance provisions are met over a two-year period after closing. Constellation also expects to close its separate but related transactions with Gallo to divest the New Zealand-based Nobilo Wine brand and related assets for $130 million and with Sazerac to divest the Paul Masson Grande Amber Brandy brand, related inventory and interests in certain contracts for approximately $255 million by the end of the fourth quarter of fiscal 2021, subject to FTC acceptance of the proposed consent order.