Subject to the usual regulatory requirements, it is expected that the deal will be completed mid-January 2010.
The transfer will include the Cider Mill at Shepton Mallet, the sales and marketing capability of GCC (including the portfolio of brands), and supporting warehousing facilities in a deal valued at £45m, subject to closing adjustments.
Transfer arrangements are being worked through for existing Gaymer Cider employees and transitional plans are also being developed jointly by both C&C Group and Constellation.
After the deal is completed Constellation will continue to support the cider operation joining C&C Group for up to six months to ensure the continuity of service.
Troy Christensen, president Constellation Wines Australia and Europe, said: “As part of the company’s efforts to enhance the prospects of the UK business, we embarked on a strategy to simplify the business and this is another move towards that goal. For the UK and in Europe the drive is to focus primarily on wine.
“For Gaymer Cider, a successful and profitable business, the opportunity now exists to develop as part of a business that is focused on the cider and beer sector.”
Peter Spencer, managing director of GCC said: “This represents a real opportunity for Gaymer Cider and the people within the company. However, it is business as usual for both organisations for now at what is a very busy time of the year.
“Once the deal is completed we can look to manage the issues of integration and future planning. In the meantime my colleagues and I have a clear focus on our existing plans and business.”
Troy Christensen added: “The Gaymer Cider business and its employees have made an enormous contribution to Constellation over many years.
“The business will be in good hands and will complement C&C’s existing cider and beer portfolio. Their track record for growing brands makes this mutually beneficial for both companies.
“I want to thank the employees in GCC who have worked extremely hard to make the business profitable and successful and I wish them well in the future.”
