US: Constellation Brands lines up Crown Imports funds
Constellation is to acquire a Mexican brewery
Constellation Brands has raised US$1.55bn in a debt offering to help pay for its full takeover of Crown Imports.
The company said today (15 May) it has also taken on a new credit agreement that will give access to a further $1.5bn. Constellation agreed in June to buy the remaining half of Crown Imports for $1.85bn, as a result of Anheuser-Busch InBev's deal to buy Modelo.
Constellation will also pay $2.9 billion for the Piedras Negras brewery and perpetual rights for Corona and the Modelo brands in the US, according to a company spokesperson. The group has committed up to $600m to upgrading the Mexican brewery.
Last month, an analyst said the brewery will help Constellation reduce margins and tackle rising costs.
It's always fun for us to write up the opinions of industry observers when they posit that the next wave of consolidation in one sector or another is set to break some time soon....
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