Constellation Brands sells off Hardys wine in $230 million deal

on 27/12/10 at 4:09 pm

Industry

Source: AP

CONSTELLATION Brands will sell the assets of Hardys wine company in a $230-million deal.

he sale to Sydney-based CHAMP Private Equity will include Hardys Reynella winery and some of Australia’s most prominent wine brands.

Labels in the Hardy stable include Hardys, Chateau Reynella, Tintara, Leasingham, Stonehaven, Banrock, Berri Estates, Renmano and Omni.

Constellation said it was selling its entire Australian operation to CHAMP in the sale, which would involve the transfer of all its staff.

The transaction includes virtually all Constellation’s Australian, UK and South African brands, wineries, facilities and vineyards, as well as the company’s 50 per cent interest in Matthew Clark, a UK wholesale joint venture.

The transaction is expected to be finalised by the end of January 2011, with Constellation retaining a 20 per cent interest in the business and receiving cash proceeds of about $230 million, valuing the company at $287 million.

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