Benzinga | Jun 30, 2021 08:50AM EDT

Constellation Brands Announces Accelerated Stock Buyback Of $500M Of Class A Common Stock

Constellation Brands, Inc. (NYSE:STZ), a leading beverage alcohol company, announced today that it has entered into an accelerated share repurchase ("ASR") agreement with Goldman Sachs & Co. LLC to repurchase $500.0 million of its Class A common stock ("Common Stock"). Under the ASR agreement, Constellation will receive approximately 1.7 million shares on July 2, 2021, representing approximately 80% of the expected share repurchases under the ASR agreement, based on the company's June 29, 2021 closing stock price of $230.98. The repurchased shares will become treasury shares.



The specific number of shares to be repurchased in the transaction is generally based upon the volume-weighted-average price of the Common Stock during the term of the ASR agreement, less a discount and is expected to be completed no later than October 2021. The purchase price for shares repurchased in the accelerated share repurchase transaction will be paid primarily with cash on hand and will be completed under the company's current share repurchase authorization, which currently has approximately $3.4 billion in authorization remaining before giving effect to the ASR.

"This accelerated share repurchase transaction demonstrates our strong commitment to maximizing shareholder value, and aligns with our commitment to return $5 billion to shareholders through fiscal 2023," said Constellation Brands President and Chief Executive Officer Bill Newlands.

This ASR agreement will not change the fiscal 2022 EPS guidance provided in our news release of earlier today and constitutes the $500 million incremental share repurchase referenced in that news release.