Clifford Chance

Clifford Chance advises CHAMP Private Equity on its acquisition of Constellation Brands, Inc

Leading international law firm, Clifford Chance today announces it is advising CHAMP Private Equity (CHAMP) on its acquisition of the UK business of Constellation Brands, Inc. (CBI), one of the world's leading wine companies.

In late December 2010, CBI announced that it has signed an agreement to sell its Australian and UK businesses to CHAMP. The UK arm of the business is known for its supply and distribution of various wine brands into the UK and Europe including Hardy's, Stowells, Kumala and Echo Falls. CHAMP makes private equity investments across a broad range of sectors, including education, logistics, mining and industrial services, health, food and beverage, financial services and niche manufacturing. The transaction completed on January 31st.

The transaction is valued at approximately A$290 million. CBI will retain a 20 per cent. interest in the business and receive cash proceeds of about A$230 million. The transaction includes virtually all CBI's Australian, UK, and South African brands, wineries, facilities, vineyards, and the company's 50 per cent. interest in Matthew Clark, the UK wholesale joint venture.

The UK aspects of the deal were led from Clifford Chance's London office, by Corporate Partner Kathy Honeywood and Corporate Senior Associate Roseanne McCormick. Gilbert + Tobin is advising CHAMP on the Australian aspects of the acquisition.

"This acquisition is another example of our strength in the consumer goods sector and our ability to field a multi-disciplinary team. We are seeing more and more beverage companies consolidating their portfolio by focusing on their key premium brands and ongoing enthusiasm of private equity players in the consumer goods sector" said Kathy Honeywood, Partner at Clifford Chance.