Constellation Europe buys Flagstone

Wine and spirits producer Constellation Europe has bought Flagstone, the South African wine maker, for an undisclosed sum.

Constellation, whose brands include Kumala, Hardys, Stowells and Banrock Station, revealed thata letter of intent to acquire the business was signed last week.

Completion of the deal is expected in approximately six weeks.

According to Constellation the acquisition "will represent a significant investment in the South African wine industry by an international wine company and demonstrates Constellation Europe's commitment to developing the South African wine category".

As part of the deal, Constellation Europe will retain the services of viticulturalist and winemaker Bruce Jack and his team.

Troy Christensen, president of Constellation Europe, said: "We are delighted to have reached agreement leading to the proposed purchase such a renowned wine company and to secure the wine making skills and expertise of Bruce Jack and his team.

"The proposed purchase of such a high-profile South African wine-making company and its dynamic portfolio of wines will mean that we have a credible premium-orientated portfolio to spearhead the development of South African wine in the UK and across Europe.

"Flagstone will help to take the South African category to another level of success by providing an incentive for the wine trade to 'premiumise' their wine business and by encouraging more shoppers to trade up to better quality more often."

Bruce Jack said he was "very excited about the opportunities that a global wine company like Constellation could bring to growing the South African category at a premium level and delighted to be spearheading this initiative".