Constellation Brands, Inc. (NYSE: STZ, STZ.B) today announced a revised agreement with Anheuser-Busch InBev (Euronext: ABI) (NYSE: BUD) that establishes Crown Imports as the number-three producer and marketer of beer in the U.S. through a complete divestiture of Grupo Modelo’s (BMV: GMODELOC) U.S. business. Constellation will acquire 50% of Crown it does not own for $1.85 billion in a transaction that establishes Crown as a fully owned entity of Constellation. The transaction also provides Constellation with independent brewing operations, Modelo’s full profit stream from all U.S. sales, and rights in perpetuity to the Grupo Modelo brands distributed by Crown in the U.S.
Nixon Peabody advised Constellation in the deal. The Nixon Peabody M&A team was led by James Bourdeau, Jeffrey LaBarge, and John Moragne. The Nixon Peabody finance team was led by Craig Mills, Sarah Abel, John LaBoda, and Deirdre Nash. Nixon Peabody real estate attorneys Paul Schrier and John Garibaldi also advised Constellation in the transaction.