Constellation said last week it has agreed to buy Ballast Point

Constellation said last week it has agreed to buy Ballast Point

Constellation Brands is to borrow US$400m to help finance its acquisition of Ballast Point Brewing & Spirits.

The company has launched a public offering on 4.75% notes in a deal that will close on 4 December. The money will be used to fund the Ballast Point buy, announced last week, as well as "other general corporate purposes", Constellation said.

Constellation Brands' US$1bn purchase of San Diego-based Ballast Point will be the company's first foray into craft beer. It said the acquisition will allow it to compete in the fast-growing craft beer sector and strengthen its position at the top-end of the beer category. The deal is expected to close by the end of the year.

Constellation Brands and the Ballast Point "sticker shock"