Constellation Brands Completes Accelerated Share Buyback Transaction

Under the transaction, the company paid $300 million in April 2010 and received a total of 17.2 million shares. Of the total amount, 13.8 million shares were received in the company's first quarter with the remaining shares received on November 30th.

2 Dec 2010 --- Constellation Brands, Inc., the world's leading wine company, has completed its $300 million accelerated stock buyback (ASB) transaction which was announced in April 2010.

Under the transaction, the company paid $300 million in April 2010 and received a total of 17.2 million shares. Of the total amount, 13.8 million shares were received in the company's first quarter with the remaining shares received on November 30th. 

"Our strong free cash flow generation has enabled the company to repay debt, fund the stock buyback transaction and targets us to reduce our leverage ratio by year end," said Bob Ryder, chief financial officer, Constellation Brands. "We currently estimate this transaction will generate about $0.09 of diluted earnings per share accretion for fiscal 2011."