E&J Gallo Winery has entered into an agreement with Constellation Brands to acquire more than 18 wine and spirits brands, along with six winemaking facilities located in California, Washington, and New York for $1.1bn. “One of the hallmarks of our success over the years has been our ability to evolve and stay on the forefront of emerging consumer trends. This decision will help enhance organizational focus on a more premium set of wine and spirits brands that better position our company to drive accelerated growth and shareholder value. In turn, Gallo is acquiring a collection of great brands that complement their operational model and business strategy to provide quality products to consumers at every price point.” Bill Newlands, Constellation Brands President and CEO. On December 12 Constellation pulled some brand from the deal lowering the value of the deal to $1.1bn, of which $250m is an earnout based on divested brands’ performance over a two-year period.