The Ontario Teachers’ Pension Plan revealed Monday it is buying the Canadian operations of U.S. alcohol company Constellation Brands for $1.03 billion.

The purchase will see Teachers acquire Mississauga – based Constellation Brands Canada, which holds three commercial wineries, five estate wineries, and 163 Wine Rack stores throughout Ontario.

The pension plan said Constellation’s Canadian division has approximately three times the market share of its closest competitor and seven of the top 20 wine brands in the Canadian market.

Constellation Brands’ labels include Inniskillin, Jackson-Triggs, Kim Crawford, Robert Mondavi, Ruffino, Sawmill Creek and Wallaroo Trail.

Constellation is “already the undisputed market leader in the Canadian wine industry and has excellent potential for continued growth and value creation,” said Jane Rowe, who is senior vice-president of private capital at Teachers.

Source: CBC