Victor, N.Y., Nov. 1 - Constellation Brands, Inc., the world's leading wine company, announced today that it is pursuing a number of opportunities with various parties to improve the prospects of its Australian and U.K. businesses.
These include opportunities which may result in the sale of certain assets and a possible combination of a portion of Constellation's Australian and U.K. wine operations with Australian Vintage Ltd. (AVL) in exchange for a substantial, but non-controlling, interest in the combined entity. Headquartered in Sydney, AVL is a leading wine company in Australia.
This potential combination would create synergies between the two companies, better positioning the new entity for success in the current challenging operating environment. If a transaction results, the combined companies would operate as a stand alone wine company, which would be listed on the Australian Stock Exchange (ASX).
"The Australian wine industry is facing unprecedented negative operating conditions," said Rob Sands, president and chief executive officer, Constellation Brands. "This combination would create a more competitive entity better positioned to deal with the current environment."
As the discussions between Constellation Brands and AVL are ongoing, there are a number of material issues which need to be addressed before a deal can be finalized. As a result, the discussions are preliminary and may not lead to such a transaction.
"Constellation Brands remains focused on achieving stronger, more sustainable results by tightening the focus of the portfolio, optimizing assets and finding synergies across all aspects of the business," concluded Sands.