NEW YORK (TheStreet) -- Shares of Constellation Brands (STZ) - Get Report were higher on heavy trading volume late Friday afternoon as the company seeks to sell its Canadian wine business, sources said, the Wall Street Journal reports.
The Victor, NY-based company's Canadian wine unit currently accounts for roughly 10% of its annual sales and could fetch more than $1 billion.
The unit includes eight Canadian wineries comprising about 1,700 acres of vineyards.
Constellation has already received offers from several buyers and Goldman Sachs is advising the company in the process, sources told the Journal.
Last April, Constellation said it would consider spinning off its Canadian wine business in an initial public offering, but changed its mind when it received takeover officers, the Journal reports.
The company has been looking to focus its business on its premium U.S. beer and wines brands.
RBC Capital Markets noted that divesting of the Canadian unit makes sense for the company's strategy, the Journal reports.
Constellation owns beer names like Corona, Modelo and Ballast Point, as well as Svedka Vodka, Casa Noble Tequila and Woodbridge wines.
More than 1.11 million shares have traded so far on Friday vs. the 30-day average volume of about 952,000 shares.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of A+.
The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: STZ