Constellation Brands announced today an agreement to buy a brewery in Obregon, in the northern State of Sonora, for US$ 600 million from Grupo Modelo, the company announced in a press release.
For Constellation's beer business the planned acquisition represents yet another step toward expanding its brewery network and gaining independence from an interim supply agreement with the Anheuser-Busch InBev-owned Grupo Modelo.
In recent years, Constellation's stable of Mexican imports has enjoyed unparalleled success in the U.S., emboldening the company to invest in its continued growth.
The Obregon brewery allows Constellation to continue meeting that growing demand as it builds out another brewery in Mexicali, said Constellation Brands spokesman Mike McGrew.
And once the deal closes, expected in early 2017, Constellation will be the sole producer of its own beers, instead of relying on Grupo Modelo.
Under the supply agreement with Grupo Modelo, the Obregon brewery already produces Corona Extra, Corona Light, Modelo Especial, Modelo Negra, Pacifico and Victoria, McGrew said.
"We believe this is the right strategy to provide near-term capacity and greater flexibility to support our growth and innovation plans, while allowing for the buildout of our Mexicali brewery over an extended time period," said Rob Sands, Constellation Brands CEO, in the news release.
The deal is subject to U.S. Department of Justice and Mexican regulatory approval.