In order to divest the Paul Masson Grande Amber Brandy brand and related inventory and interests to Transform Company’s Wine & Spirits, Constellation Brands, Inc., a US-based beverage alcohol company, has moved into an agreement with Sazerac Company, Inc., an old American privately held distillers. The deal has to go through a FTC review and clearance, and is expected to close in the second quarter of fiscal 2021. It is viable to purchase price and closing adjustments.

Constellation Brands, Inc., will divest the Paul Masson Grande Amber Brandy brand and inventory and the interests via multiple contracts of worth totaling around $255 million.

While to divest its Nobilo Wine brand and certain related assets and liabilities, Constellation has announced a separate agreement with E. & J. Gallo Winery. The process of divesting is comprised of $130 million under the purchase price and closing adjustments. The Nobilo transaction is purposed to close before the ending of second quarter of fiscal 2021.

Constellation sees the agreements as a step forward in the efforts to transform its wine and spirits business. This agreement was announced first time in December 2019. The deal was amended and revised while contingent announcement happened in May 2020. After revisions Constellation was agreed to divest a portion of its wine and spirits portfolio. It was principally priced at $11 retail and below, and related facilities to E. & J. Gallo Winery for around $1.03 billion. $250 million is an earnout based on divested brand performance during the two-year period after the closing of deal. The Constellation divesting amended revised deal is expected to close in the 2^nd quarter of fiscal 2021. Although the deal requires governmental approvals, and FTC review and clearance.

President and chief executive officer of Constellation Brands Bill Newlands said, “Thanks to the continued hard work of our Constellation team members, together with our distributor and retailer partners, our strategy continues to gain momentum. We look forward to closing these transactions in the coming months.”