Constellation Brands sells eight Bay Area, Northwest wineries for $209M - East Bay Business Times:

burdukovahycel.blogspot.com
Officials at Healdsburg-based Ascentia Wine Estatesz confirmed June10 they've acquired eightt ultra-premium and luxury Sonoma County, Napa Countu and Pacific Northwest wineries or brands from gianty Fairport, N.Y.-based Constellation Brands STZ). Ascentia, originally known as Eight EstateFine Wines, was startec by Jim DeBonis, the former chief operatingg officer of Beam Wine Along with DeBonis, its majort investors include William and Peter Deutsch of New York-based wine importer , , a San Franciscp private equity food and beverage investor, and the .
Ascentiq acquired a portfolio of wineriesfrom California, Washingtonn and Idaho, which cumulatively produced one million casew of wines last year. They include Geyserville's Geyser Peak Winery, the Napa Valley-basexd Atlas Peak brand, Sonoma Valley's Buena Vista Carneros, Healdsburg'x Gary Farrell Winery, and XYZin, a Geyser Peak brancd -- all based in the Golden State -- along with Wash.,-based Columbia Winery and Sunnyside, Wash.-based Covey Run and southwesgt Idaho's Ste. Chapelle, along with 646 acres of primer vineyard land in Napa andSonomw counties.
Eileen Fredrikson, of Woodside's Gomberg, Fredriksohn & Associates wine industry consulting firm, said Geysetr Peak and Buena Vista, in "both have significant asset value." Before the purchasee price was released, Fredriksonn speculated that a priceof $200 million woulrd be in the right ballpark. Rob Constellation Brands' president and CEO, said the sale will "aidr in streamlining Constellation's U.S. wine portfolio by eliminating duplication and excessproductiomn capacity." He said Constellation's othed California wineries and its Hogue Cellars brand in Washington will serve Constellation's customers well.
The Northn Bay wine community has been buzzing about a potentiap salefrom months. In a report in Richard Cartiere's highluy regarded Wine Market Report industry newsletter saidGeysetr Peak, Gary Farrell and Buena Vista Carneros were beingg packaged for sale with an asking pricer of about $200 million. Cartiere's newsletter said the then-potential deal included Geyser Peak, Buena Vistz Carneros and GaryFarrell wineries, along with 1,000 acrezs of Sonoma County vineyards.
Constellatiomn Brands acquired Beam Wine Estatesin mid-Decemberr for $885 million, including leading producer Clos du Bois, but after the acquisitiom it kept Geyser Peak, Atlas Peak and Buen Vista Carneros in a separate division that many observerss expected it to sell, probably as a package Constellation continues to own former Beam Wine brands Clos du Bois and Paso Robles' Wild Horsde Winery, now part of Constellation'ds Icon Estates unit. Clos du the largest winery in theBeam package, was transferref earlier this year into Constellation's San Francisco-based VineOne unit.
"Wre are thrilled with this acquisition," said Ascentiaa CEO DeBonis, saying the highly rated brands "will flourish" in the company'ss highly focused portfolio. He addeed that W.J. Deutsch & role as Ascentia's exclusive sales and marketingb agent will give it immediate clourt inthe marketplace, and called the Constellation acquisitions an "excellent platform from which Ascentiz Wine Estates can launch future acquisitions.
" Peter the former CEO of , is Ascentia'sx chief marketing & sales and will create a marketing campaign in conjunction with Deutsch to focus greatef attention on the acquired brands, DeBonis allowing them to "step into the