The Black Velvet whisky distillery in Lethbridge, Alta., is expected to fall under new ownership later this year.
In a news release on Monday, its parent company Constellation Brands, Inc. said it had signed an agreement with Heaven Hill Brands to divest Black Velvet Canadian Whisky and the brand’s associated production facility in north Lethbridge, along with a subset of Canadian whisky brands also produced at the facility.
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“We are relentlessly focused on the consumer and building a portfolio of brands consumers love today, while pushing beyond to meet their evolving needs well into the future,” Bill Newlands, Constellation Brands president and CEO, said in a news release.
“This decision aligns with our consumer-led premiumization strategy to deliver accelerated growth and shareholder value as we continue to focus our wine and spirits portfolio on higher-end, fast-growing brands.
“For Heaven Hill, Black Velvet is a historic, well-known, and high-volume brand that complements their broad distilled spirits portfolio and aligns with their business strategy,” Newlands said.
Subject to regulatory approvals and closing adjustments, Constellation Brands, Inc. said it expects to receive $266 million USD.
The company said it expects to close the deal before the end of 2019.
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