Last year, Constellation USA announced a $1 billion deal with Chateau Garroux that is expected to close by the end of November.
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In October 2018, rumors surfaced that Constellation Group was considering selling its U.S. wine brands, including Paulin Winery, Mark West, Arbor Mist and cook.
In April 2019, Constellation Group and Chateau Garou announced a $1.7 billion deal in which the company will sell 30 lower-priced wine brands ($11 or less per bottle of wine), as well as six winemaking facilities.
However, in May of this year, the transaction was forced to be postponed as both companies received requests from the Federal Trade Commission for additional information related to the submitted transaction for review.
Since then, the brand has undergone several revisions and Constellation Group now retains Cook " s California Champagne, J. Roget American Champagne, Paul Masson Grande Amber Brandy and Mission Bell winery.
In May 2020, the deal was reduced to $1.03 billion. Brands involved in the deal include Clos du Bois, Black Box, Estancia, Mark West, Wild Horse, Franciscan and Ravenswood.
In its latest financial statement announcing its second fiscal quarter results, Constellation said that the acquisition of Château Garrou will be completed by the end of the third fiscal quarter of 2021 (by November 30, 2020).
The statement said another deal between Constellation Group and Chateau Garou will also be completed at the same time. Constellation will sell its New Zealand wine brand Nobilo and its related assets for $130 million.
For the three months ended August 31, 2020, net sales in Constellation's Wine & Spirits segment decreased by 11% to $624.5 million compared to the same period in 2019.