Ontario Teachers' acquires Canada's largest wine business from Constellation Brands

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Oct 17, 2016, 08:09 ET

TORONTO, Oct. 17, 2016 /PRNewswire/ - Ontario Teachers' Pension Plan (Ontario Teachers') today announced the acquisition of Constellation Brands Canada, the Canadian operation of Constellation Brands, for approximately $1.03 billion (CDN). The transaction is expected to close before the end of the calendar year.

Constellation Brands is a publicly traded, international producer and marketer of beer, wine and spirits with operations in the U.S., Canada, Mexico, New Zealand and Italy. The Canadian wine business of Constellation Brands is the market leader in Canada with approximately three times the market share of its closest competitor and 7 of the top 20 wine brands in the Canadian market.

"Constellation Brands Canada is an ideal addition to our Consumer Portfolio," said Jane Rowe, Senior Vice-President, Private Capital. "The company is already the undisputed market leader in the Canadian wine industry and has excellent potential for continued growth and value creation."

Constellation Brands Canada is headquartered in Mississauga and operates three commercial wineries, five estate wineries, and 163 Wine Rack stores throughout Ontario. Its diverse portfolio of domestic and international wines includes such well-known names as Inniskillin, Jackson-Triggs, Kim Crawford, Robert Mondavi, Ruffino, Sawmill Creek and Wallaroo Trail.

"We look forward to partnering with Constellation's impressive management team and President and CEO Jay Wright to capitalize on long-term growth trends in the wine industry," stated Jane Rowe. "Constellation delivers stable and predictable cash flows and provides us with an excellent investment platform in this growth industry."

"Our Canadian management team is excited about working with Ontario Teachers' to take our business vision to the next level," said Jay Wright. "Their financial commitment and considerable expertise in helping their portfolio companies achieve meaningful strategic market advantages set the stage for an exciting partnership."

About Ontario Teachers'
The Ontario Teachers' Pension Plan (Ontario Teachers') is Canada's largest single-profession pension plan, with $171.4 billion in net assets at December 31, 2015. It holds a diverse global portfolio of assets, 80% of which is managed in-house, and has earned an annualized rate of return of 10.3% since the plan's founding in 1990. Ontario Teachers' is an independent organization headquartered in Toronto. Its Asia-Pacific region office is located in Hong Kong and its Europe, Middle East & Africa region office is in London. The defined-benefit plan, which is fully funded, invests and administers the pensions of the province of Ontario's 316,000 active members and retired teachers. For more information, visit otpp.com and follow us on Twitter @OtppInfo.

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. Constellation is a Fortune 500® company and one of the top performing stocks in the S&P 500 Consumer Staples Index. Constellation is the No. 3 beer company in the U.S. with high-end, iconic imported brands, such as Corona Extra, Corona Light, Modelo Especial, Modelo Negra and Pacifico. The company's beer portfolio also includes Ballast Point, one of the most awarded craft brewers in the U.S. In addition, Constellation is the world's leader in premium wine selling great brands that people love, including Robert Mondavi, Clos du Bois, Kim Crawford, Meiomi, Mark West, Franciscan Estate, Ruffino and Jackson-Triggs. The company's premium spirits brands include SVEDKA Vodka and Casa Noble Tequila.

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 9,000 talented employees. We express our company vision: to elevate life with every glass raised. To learn more, visit www.cbrands.com.

SOURCE Ontario Teachers' Pension Plan