Takeover deal cheers wine companies
The world’s largest wine company is being created through the $1.4bn (€1.3bn) takeover of Australian firm BRL Hardy by US group Constellation Brands, it was announced today.
Constellation owns the Stowells of Chelsea brand, while BRL Hardy owns Hardys, Banrock Station, Stamp of Australia and Nottage Hill.
The US group, whose UK division, Matthew Clark, is based in Bristol, also has the brands Blackthorn, Diamond White, Babycham and Strathmore water.
Under the cash-and-shares deal, Constellation will pay $1.1bn (€1bn) for Hardy’s equity and take on around $325m (€305m) of debt.
Constellation’s chairman and chief executive Richard Sands said the merger would combine two “fast growing and high performing companies”.
“Together, we will create the world’s largest wine company, with powerful market positions in the US, UK and Australia and a strong platform to grow our export business in other key markets,” he said.
Stephen Millar, managing director of BRL Hardy, said: “We will immediately benefit from increasing market share in the UK and US and will continue developing our business in other key wine markets.”
Constellation employs 2,000 staff in the UK. In addition to its UK head office at Bristol the group has its Strathmore water business in Forfar, Scotland, and a wholesale business, Forth Wines, based north of Edinburgh.
Hardys employs around 100 staff in Esher, Surrey.
A spokesman for Matthew Clark could not be specific about the outlook for jobs.
He said: “It is a global deal but both companies have a major presence in the UK.
“The premise of the deal is to have an enlarged business. We see the business getting bigger and stronger. Precisely how many people will work in that business we don’t know.”
