Winemaker finally uncorks deal for Mondavi

InTech, Dec 2004

news brief...

After a few weeks of haggling, Robert Mondavi Corp. finally agreed to a $1.04 billion purchase price from Constellation Brands Inc., the world's largest winemaker.

This deal, the latest in a rapidly consolidating wine industry, marked an increase in price from Constellation's first unsolicited offer of $970 million in October.

The purchase will add Mondavi's famous labels such as Woodbridge and Opus One to a portfolio of brands that includes Simi, Ravenswood, and Almaden wines, as well as St. Pauli Girl and Corona beers.

The deal continues a wave of consolidation in the wine industry. Earlier, French luxury wine maker Domaines Barons de Rothschild agreed to buy the 51% of Chalone Wine Group it did not already own for $83.5 million. That was a 31% increase from its original offer in May.