Leading Craft Brewer Ballast Point Joins Constellation Brands
(Thomson Reuters ONE) -
Constellation Strengthens Its Position in the Highest End of the U.S. Beer
Market with New Craft Platform
VICTOR, N.Y. and SAN DIEGO, Calif., Nov. 16, 2015 - Constellation Brands (NYSE:
STZ and STZ.B), a leading beverage alcohol company, today announced an agreement
to acquire San Diego-based Ballast Point Brewing & Spirits. Ballast Point is one
of the fastest growing craft beer companies in the U.S. with a beer portfolio
that includes more than 40 different styles of beer, led by its popular Sculpin
IPA and Grapefruit Sculpin IPA. The partnership with Ballast Point provides a
high-growth premium platform that will enable Constellation to compete in the
fast-growing craft beer segment, further strengthening its position in the
highest end of the U.S. beer market.
Ballast Point started in 1996 as a small group of home brewers and remains
dedicated to the art of making better quality craft beer. Ballast Point will
continue to operate as a stand-alone company with its existing management team
and employees running the day-to-day operations. The company is one of the most
successful and respected craft beer companies in the country, with an expertise
in brewing the most premium, highest quality award winning products, and a
grassroots approach to innovation that engages beer lovers and home brewers in
the process. The Ballast Point team will continue to build on its successful
expansion across the U.S., and will now have access to Constellation's strong
financial position and willingness to invest in growth.
"We started this business nearly 20 years ago with a vision to produce great
beer that consumers love and to do it the right way," said Jack White, founder
of Ballast Point Brewing & Spirits. "To achieve that vision, we needed to find
the right partner. The team at Constellation shares our values, entrepreneurial
spirit and passion for beer, and has a proven track record of helping successful
premium brands reach the next level of growth and scale."
"We believe in the vision that Jack and his team have created and we're excited
to welcome Ballast Point, one of the most respected craft brewers in the
country, to the Constellation Brands family," said Rob Sands, chief executive
officer, Constellation Brands. "Along with imports, craft beer is a key driver
of growth and premiumization within the beer industry, with craft doubling its
share of the U.S. beer market in the last five years. Ballast Point has
certainly been a key driver of that growth. Their business philosophy and
entrepreneurial spirit perfectly align with our culture and we look forward to
strengthening our position in the high-end beer segment with what is arguably
the most premium major brand in the entire craft beer business."
Ballast Point is on pace to sell nearly 4 million cases in calendar 2015, which
would represent growth of more than 100 percent versus calendar 2014. Net sales
for calendar 2015 are expected to approximate $115 million. Volume and net sales
growth from calendar 2012 to calendar 2014 averaged over 80 percent. Ballast
Point employs more than 500 employees, produces beer in four facilities in the
San Diego, CA area, and sells its beer in over 30 states.
Constellation Brands plans to purchase Ballast Point Brewing & Spirits for
approximately $1 billion. The purchase price values the acquisition multiple of
the projected calendar 2016 Ballast Point EBITDA in the mid-to-high teens range.
Constellation estimates that on a comparable basis( (1)), the acquisition is
expected to be neutral to diluted earnings per share for fiscal 2016 and $0.05
to $0.06 accretive for fiscal 2017. The transaction will be financed with cash
and debt, and is expected to close by the end of calendar year 2015, subject to
customary closing conditions.
((1)) Comparable basis excludes transaction and other acquisition-related
costs.
About Constellation Brands
Constellation Brands (NYSE: STZ and STZ.B) is a leading international producer
and marketer of beer, wine and spirits with operations in the U.S., Canada,
Mexico, New Zealand and Italy. In 2014, Constellation was one of the top
performing stocks in the S&P 500 Consumer Staples Index. Constellation is the
number three beer company in the U.S. with high-end, iconic imported brands
including Corona Extra, Corona Light, Modelo Especial, Negra Modelo and
Pacifico. Constellation is also the world's leader in premium wine, selling
great brands that people love including Robert Mondavi, Clos du Bois, Kim
Crawford, Rex Goliath, Mark West, Franciscan Estate, Ruffino and Jackson-Triggs.
The company's premium spirits brands include SVEDKA Vodka and Black Velvet
Canadian Whisky.
Based in Victor, N.Y., the company believes that industry leadership involves a
commitment to brand-building, our trade partners, the environment, our investors
and to consumers around the world who choose our products when celebrating big
moments or enjoying quiet ones. Founded in 1945, Constellation has grown to
become a significant player in the beverage alcohol industry with more than 100
brands in its portfolio, sales in approximately 100 countries, about 40
facilities and approximately 7,700 talented employees. We express our company
vision: to elevate life with every glass raised. To learn more, visit
www.cbrands.com.
About Ballast Point
What started in 1996 as a small group of home brewers who simply wanted to make
great beer evolved into a team of adventurers known today as Ballast Point. From
bringing a hoppy twist to a porter, or adding four types of malt to its amber
ale, to creating a breakthrough gold medal winning IPA, the San Diego-based
company is known for adding its own touch and asking if there's a better way.
Today as an internationally recognized leader in the craft brewing and spirits
industry, the company makes over 40 styles of beer.
Forward-Looking Statements
This news release contains forward-looking statements. All statements other
than statements of historical fact are forward-looking statements. The word
"expect" and similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain such identifying
words. These statements may relate to business strategy, future operations,
prospects, plans and objectives of management, as well as information concerning
expected actions of third parties. All forward-looking statements involve risks
and uncertainties that could cause actual results to differ materially from
those set forth in, or implied by, such forward-looking statements. The
forward-looking statements are based on management's current expectations should
not be construed in any manner as a guarantee that such results will in fact
occur or will occur on the timetable contemplated hereby. The transaction
between Constellation Brands and Ballast Point Brewing & Spirits is subject to
the satisfaction of certain closing conditions, including receipt of any
necessary regulatory approvals. There can be no assurance that any transaction
between Constellation Brands and Ballast Point Brewing & Spirits will occur or
will occur on the timetable contemplated hereby. All forward-looking statements
speak only as of the date of this news release and Constellation Brands
undertakes no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
In addition to the risks and uncertainties of ordinary business operations, the
forward-looking statements contained in this news release are subject to other
risks and uncertainties, including completion of the announced transaction; the
accuracy of all projections; the ability to achieve volume and net sales growth
estimates and the benefits of the transaction may vary due to different
financial results from those anticipated and the timeframe in which achieved
will depend on actual financial performance; and other factors and uncertainties
disclosed from time-to-time in Constellation Brands, Inc.'s filings with the
Securities and Exchange Commission, including its Annual Report on Form 10-K for
the fiscal year ended February 28, 2015, which could cause future performance to
differ from current expectations.
CONTACTS
Media
Cheryl Gossin: 585-678-7191
Amy Martin: 585-678-7141
Investor Relations
Patty Yahn-Urlaub: 585-678-7483
Bob Czudak: 585-678-7170
Atlantic-Factsheet_v2:
http://hugin.info/143788/R/1967065/718452.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Constellation Brands Inc via GlobeNewswire
[HUG#1967065]
Unternehmensinformation / Kurzprofil:
Datum: 16.11.2015 - 15:04 Uhr
Sprache: Deutsch
News-ID 434847
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