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CANANDAIGUA WINE COMPANY, INC. ANNOUNCES COMPLETION OF VINTNERS ACQUISITION

 CANANDAIGUA, N.Y., Oct. 15 /PRNewswire/ -- Canandaigua Wine Company, Inc. ("Canandaigua" or the "company") (NASDAQ: WINEA) announced today that it has acquired substantially all of the assets and business of Vintners International Company, Inc. ("Vintners"). Vintners is the fifth largest wine producer in the United States. Vintners' principal brands include Paul Masson, Taylor California Cellars, Taylor New York, Deer Valley, St. Regis (non-alcoholic) and Great Western.
 The consideration for the transaction consisted of a cash purchase price of $149.6 million, subject to certain post closing adjustments, and the issuance of options to purchase an aggregate of 500,000 shares of Canandaigua's Class A common stock at an exercise price of $18.25 per share. Canandaigua has also assumed certain ongoing liabilities of Vintners but has not assumed any of Vintners' obligations to its lenders. Approximately $19 million of the acquisition price related to the purchase of grapes from the 1993 harvest which is near completion. Vintners' net sales for its fiscal year ended July 31, 1993 were $156.4 million and its earnings before interest, taxes, depreciation and amortization were $10.5 million. Vintners' aggregate depreciation and amortization for fiscal 1993 was approximately $8.3 million.
 The acquisition was financed by an increase in the company's revolving line of credit by $40 million arranged through The Chase Manhattan Bank N.A. ("Chase") and by an additional credit facility provided by Chase in the form of a 10 year floating rate senior subordinated loan in the principal amount of $130 million.
 Effective upon closing, Canandaigua integrated the Vintners business into its wine operations and hired the majority of Vintners employees. Approximately 70 persons formerly employed by Vintners were not retained. The organizational integration includes all areas of the business including production, finance, general and administrative, and marketing and sales. Canandaigua's sales force will be selling the acquired brands primarily through its existing distributor network.
 This acquisition makes the company the second largest wine producer in the United States. In addition, the company is the fourth largest marketer of imported beers and the eighth largest producer and marketer of distilled spirits in the United States. The company's principal brands include Corona beer, Richards Wild Irish Rose wines, Paul Masson wines, Taylor California Cellar wines, Cooks Sparkling wines, St. Pauli Girl beer, Cisco wines, Cribari wines, Manischewitz wines, Barton Gin and Vodka, Tsingtao Beer, Ten High Bourbon and Montezuma Tequila.
 -0- 10/15/93
 /CONTACT: Lynn K. Fetterman, vp, of Canandaigua, 716-394-7900, or Beverly Jedynak of Martin E. Janis, 312-943-1100, for Canandaigua/
 (WINEA)


CO: Canandaigua Wine Company; Vintners International Company, Inc. ST: New York IN: FOD SU: TNM

BM-AR -- CL018 -- 2856 10/15/93 15:28 EDT
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Publication:PR Newswire
Date:Oct 15, 1993
Words:445
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