Constellation Brands

Constellation Brands in its $5.1 billion strategic investment in and partnership with Canopy Growth Corporation

Client

Constellation Brands

Value

$5.1 billion

Service

Mergers and Acquisitions

Date Closed

Lead Office

Toronto


 

On August 15, 2018, Constellation Brands announced an agreement to significantly expand its strategic investment in and partnership with Canopy Growth Corporation. Constellation Brands has agreed to purchase 104.5 million common shares and warrants to purchase an aggregate of 139.7 million common shares from Canopy Growth. When combined with Constellation’s existing indirect holdings, the common shares will result in Constellation holding a 38% ownership interest (taking into account its existing warrants). If exercised, the warrants to be issued would result in Constellation holding a 55% interest in Canopy Growth on a fully diluted basis.

This investment of $5.1 billion will provide funds for Canopy Growth to deploy to strategically build and/or acquire key assets needed to establish global scale in the nearly 30 countries pursuing a federally permissible medical cannabis program, while also rapidly laying the global foundation needed for new recreational cannabis markets.

Constellation Brands is a Fortune 500 company and a leading, international producer and marketer of beer, wine and spirits with operations in the U.S., Mexico, New Zealand, Italy and Canada.

Canopy Growth is a leading diversified cannabis company based in Smiths Falls, Ontario, Canada.

Osler, Hoskin & Harcourt LLP represented Constellation Brands with a team led by Manny Pressman and including James Brown, Andrea Whyte, Brett Anderson, Douglass Dawson and Justin Sherman (Corporate); Shuli Rodal and Michelle Lally (Competition); Martha Martindale (Financial Services).


Team
Emmanuel  Pressman

Emmanuel Pressman

Partner, Chair, Corporate

James R. Brown | Mining lawyer

James R. Brown

Partner, Corporate

Andrea  Whyte

Andrea Whyte

Partner, Corporate

Brett Anderson

Brett Anderson

Associate, Corporate

Douglass Dawson

Douglass Dawson

Associate, Corporate

Justin Sherman

Justin Sherman

Associate, Corporate

Shuli Rodal - Competition Lawyer

Shuli Rodal

Partner, Competition Law/Foreign Investment Group

Michelle Lally - Competition/Antitrust Lawyer

Michelle Lally

Partner, Competition Law/Foreign Investment Group

Martha Martindale

Martha Martindale

Partner, Financial Services