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Article: Constellation sells value spirits unit for $274M
- Article from:
- AP Worldstream
- Article date:
- January 12, 2009
- Author:
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Constellation Brands Inc. said Monday it is selling its value spirits business to Sazerac Co. Inc. for $274 million as it tries to focus on the more lucrative premium end of the wine and spirits markets.
The world's biggest wine company said the sale of more than 40 vodka, gin, rum, schnapps, cordial and other liquor brands will reduce its full-year profit guidance in its 2009 fiscal year ending Feb. 28.
The sale to New Orleans-based Sazerac, which is expected to close in February, includes $274 million in cash and $60 million in debt financing by Constellation Brands at market interest rates.
The value brands, many of them priced at about $6 for a 750-milliliter ...