The owner of Corona, Modelo Especial, and Svedka Vodka is getting greener.
Constellation Brands (STZ) , an international producer and marketer of beer, wine and spirits, on Monday announced that it had agreed to acquire a minority stake in Canopy Growth Corp. (TWMJF) , an Ontario, Canada-based provider of medicinal cannabis products.
The investment by Constellation is in conjunction with its efforts to "identify, meet and stay ahead of evolving customer trends and market dynamics, while maintaining focus on its core total beverage alcohol business," the company said.
Constellation has no plans to sell cannabis products in the U.S. or any other market until the substance is deemed legally permissible to do so at all government levels.
"Canopy Growth has a seasoned leadership team that understands the legal, regulatory and economic landscape for an emerging market that is predicted to become a significant consumer category in the future," said Constellation CEO Rob Sands. "Our company's success is the result of our focus on identifying early-stage consumer trends, and this is another step in that direction."
The investment is projected to total C$245 million representing an ownership interest of 9.9% of Canopy Growth, plus warrants which give Constellation the choice to purchase an additional ownership interest in the future. The transaction is expected to close during Constellation's third quarter of fiscal 2018.
Canopy Growth, founded in 2014, boasts a market cap of C$2 billion and owns several brands which serve customers requiring medicinal cannabis.
Shares of Constellation Brands opened nearly 1% on Monday.
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