US: Constellation sells Washington winery
Constellation Wines US is set to sell one of its wineries in the country.
The Constellation Brands subsidiary confirmed yesterday (26 October) that it has secured an agreement to sell Zillah winery in the Yakima Valley, Washington to Roza Hills Vineyards. Financial details surrounding the purchase, which is expected to close in February next year, were not disclosed.
The winery was acquired by Constellation as part of an acquisition of assets from Corus Brands in 2001. Since then, Constellation has leased the winery to Washington Wine & Beverage, an affiliate of Roza Hills, which operates it.
"The purchase of the Zillah winery is the natural next step for a business relationship that has been mutually beneficial to both Washington Wine & Beverage and Constellation Wines US," said Sal Leone, president and CEO of Washington Wine & Beverage Company.
"Our Roza Hills operations will benefit from this investment as we make further commitments to the continuing success of our Yakima Valley wines. The acquisition of this property now allows us to control the growth of our grapes and the production of Silver Lake wines together on one site."
Earlier this month, Constellation Brands posted an 18% fall in second-quarter net profit to US$68m due to restructuring charges from its acquisition of Vincor International earlier this year.
Operating profit was up 4% to US$181m as net sales rose 19% to US$1.4bn. The slide led Constellation to cut its full-year earnings guidance from US$1.72-1.80 to $1.72-1.76.
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