Constellation Brands Inc. has entered into an agreement to sell its Gaymer Cider Co. business to C&C Group PLC of Dublin, Ireland, for some $70 million, the Victor firm said Monday.
The transaction is expected to close by mid-January and is subject to closing adjustments.
“The Gaymer cider business has been a valued and respected part of Constellation’s European operations for many years,” said Robert Sands, Constellation president and CEO, in a statement. “However, as the company’s strategy has evolved to focus on premium higher-growth, higher-margin wine, beer and spirits brands, it made good strategic sense to sell the cider business.”
As part of the transaction, C&C Group will receive all Gaymer cider brands, including Blackthorn Cider, Gaymers Original and Pear Cider, Addlestones and Olde English Cider, along with a production facility and associated warehouses and distribution facilities.
Constellation expects proceeds from the sale will be used to reduce its borrowings.
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