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Constellation Plans to Buy Fortune's Wine Business

Constellation Brands plans to buy the U.S. wine business of Fortune Brands for $885 million, the companies said Monday.

The companies see the sale, which includes the Clos du Bois, Geyser Peak, and Wild Horse brands, closing by Dec. 31.

Fortune , which also owns Jim Beam bourbon, Titleist golf equipment and Moen faucets, said it expected to realize net proceeds of $840 million after taxes, and an after-tax gain of $50 million to $60 million on the sale.

Constellation , which already owns brands such as Robert Mondavi and Ravenswood, said it expected the acquisition to reduce earnings modestly in fiscal 2008 and add to them slightly in fiscal 2009.