Constellation buys Vincor for $1.31bn

Joe Bates

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The on-off deal to buy the Canadian winemaker—producer of Inniskillin icewine—has finally been secured

The world's largest wine group Constellation Brands has agreed to purchase Canadian winemaker Vincor International for $1.31bn.

The deal, which has been approved by the boards of both companies but awaits shareholder approval, ends a six-month hostile take over bid by Constellation for the owner of Inniskillin and Jackson Trigg icewines, Kim Crawford New Zealand wines and South African wine brand Kumala.

Constellation Brands chairman and ceo Richard Sands commented: "Canada will become a core market for Constellation, while adding new and existing brands to our already formidable portfolio in other key markets. Our cultures, values, decentralised structures are similar and we are confident that this is in the best interest of both companies' brands, shareholders, customers and employees."

The purchase is scheduled for completion at the beginning of June. According to Generation, Inniskillin icewine was the best distributed wine in duty-free and travel-retail in 2004.