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Constellation to sell cider business

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.

 (c) 2009 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail rbj@rbj.net.

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