Constellation Brands has finalised the sale of its Arrowood and Byron wine assets for US$40m to The Legacy Estates Group LLC, owners of the Freemark Abbey Winery located in St. Helena California. The sale closed yesterday.

In a statement the company said that of the US$40m purchase price, US$20.5m will be paid to a third party to satisfy obligations remaining from the original purchase of these wine assets by The Robert Mondavi Corporation.

Included in the sale are the Arrowood, Grand Archer, Byron and IO brands and all inventory, grape contracts, wineries and vineyards associated with the operations being sold. Arrowood is based in Sonoma, Calif., while Byron is headquartered in Santa Maria, Calif. Combined sales of these four brands is 87,000 cases annually.

Sale of the Arrowood and Byron wine assets was initiated prior to the acquisition of Robert Mondavi by Constellation late last year.