Constellation Brands, Inc., the maker of wine, spirits and beer, has agreed to acquire Canada’s winemaker Vincor International, in a cash deal worth about $1.3 billion.
After months of hostile bidding for Vincor, Constellation withdrew offers in December after Vincor passed on a $1 billion cash bid, according to news reports.
Even with the acquisition, Constellation, the world’s biggest winemaker, will control less than 5% of the worldwide wine market, reports said.
The deal is expected to close in June.
“Discussions and diligence led the Constellation and Vincor management teams and boards of directors to the conclusion that this is a mutually beneficial transaction because it is a natural fit for both companies,” said Richard Sands, Constellation Brands chairman and CEO, in a statement.
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