Viña Concha y Toro acquires Fetzer Vineyards, expanding operations to California
on 01/03/11 at 10:11 pmIndustry
Santiago, Chile, March 1, 2011 – Viña Concha y Toro S.A. (NYSE: VCO) and Brown-Forman Corporation (NYSE: BFA, BFB) announced today the acquisition by Viña Concha y Toro of Fetzer Vineyards and related assets from Brown-Forman in California. The purchase price for the transaction is US$ 238 million. The transaction is expected to close in April 2011, subject to regulatory and other customary closing conditions.
The acquisition includes a portfolio of brands with attractive positioning in the American wine market including: Fetzer, Bonterra, Five Rivers, Jekel, Sanctuary and Little Black Dress. For fiscal 2010, the acquired brands represented volumes of 3.1 million cases and net sales of US$156 million; Concha y Toro also acquires assets including mainly: 429 hectares of vineyards owned and leased in Mendocino County, California; cellars with capacities of 36 million liters (Hopland, California) and 6 million liters (Paso Robles, California) and a bottling facility. The key facilities are located in Hopland, California and employ approximately 240 people.