The Ontario Teachers’ Pension Plan has added wine to its portfolio.
The pension fund bought Constellation Brands Inc.’s wine business for a reported $780 million, according to a statement on Monday.
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Ontario Teachers’, Canada’s third-biggest pension fund, said it will be partnering with the existing management team at Constellation Brands Canada, including CEO Jay Wright.
The business is “an ideal addition to our consumer portfolio,” Jane Rowe, Ontario Teachers’ senior vice president of private capital, said in a separate statement. “The company is already the undisputed market leader in the Canadian wine industry and has excellent potential for continued growth and value creation.”
Even as it offloads the Canadian business, Constellation is shoring up its lineup of pricier wines. The company announced Monday that it had agreed to acquire the Charles Smith collection of five super- and ultra-premium wines for about $120 million. Constellation also completed the purchase of High West Distillery and bought a minority stake in Bardstown Bourbon Co.
Constellation has called itself Canada’s leading wine company.