Ravenswood Shares Jump 65% on Deal

Shares of Ravenswood Winery Inc. surged 65% on Wednesday to their highest level since the company went public in April 1999, after alcoholic beverage producer Constellation Brands Inc. agreed to acquire the winery for $148 million.

Constellation Brands agreed to buy Sonoma, Calif.-based Ravenswood for about $29.50 a share and said it will assume minimal debt. The deal was seen closing in June and neutral to earnings for Constellation’s fiscal year ending in February.

Shares of Ravenswood, a premium-wine maker best known for its Zinfandel, rose $11.33 to close at $28.85 on Nasdaq. The company had traded between $10.50 and $18.25 in the last year.

Shares of Fairport, N.Y.-based Constellation Brands slipped $2.52 to close at $68.45 on the New York Stock Exchange.

Constellation Brands is the second-largest U.S. winemaker. Wine made by Ravenswood would help Constellation’s expansion in the fastest-growing segment of the alcoholic beverage market. Ravenswood would be managed by Constellation’s fine wine unit, Franciscan Estates. Ravenswood produces mostly red wine, including Merlot, Cabernet Sauvignon and particularly Zinfandel.

Ravenswood sold about 444,000 cases of wine valued at about $37.9 million last year, Constellation said. Officials at Constellation and Ravenswood couldn’t immediately be reached for comment.