The Ontario Teachers’ Pension Plan ‘OTPP’ has made a decision to purchase the Canadian operation of U.S Alcohol Company Constellation Brands bought for an amount of $1.03 billion. The Mississauga Constellation Brands Canada that is based in Ontario will be acquired by the teachers. There are over 163 Wine Rack stores owned by the company, along with three commercial wineries.
Most of the main 20 wine brands in Canada’s market is owned by Constellation’s division in Canada, with a market share worth more than the share of their competing firms. Brands like Sawmill Creek, Kim Crawford, Inniskillin, Wallaroo Trail and Robert Mondavi are all labels under Constellation Brands’.
Jane Rowe who holds the position of Senior Vice-President of the OTPP said; “Constellation is already the undisputed market leader in the Canadian wine industry and has excellent potential for continued growth and value creation.” There were earlier mentioned plans made by Constellation Brands to further venture into a preliminary opening proposal for some of its wine business in Canada.
The acquisition of Vincor in a $1.52 billion takeover by Constellation Brands also caused them to attain Jackson-Triggs and Inniskillin wines in the year 2006. The president and CEO of Constellation Brands’, Rob Sands said; “We seized the opportunity to sell the entire business in a value-enhancing transaction when it presented itself.”