CHICAGO (Reuters) - Constellation Brands Inc. (STZ.N: Quote, Profile, Research, Stock Buzz), owner of Effen Vodka and Robert Mondavi wine, would not acquire Absolut vodka maker Vin & Sprit if it's put up for sale at the price of current estimates, Constellation's chief executive said on Wednesday.
"Current price estimates are nearing, if not over, $6 billion," Constellation CEO Richard Sands said, speaking at the Reuters Food Summit in Chicago. "At that level we are not interested in Absolut."
Rivals Fortune Brands Inc. (FO.N: Quote, Profile, Research, Stock Buzz), Diageo Plc (DGE.L: Quote, Profile, Research, Stock Buzz), Pernod Ricard (PERP.PA: Quote, Profile, Research, Stock Buzz), and Bacardi are considered the most likely suitors, Sands said.
"It's a very, very, very expensive proposition, and in my opinion we as a company are not in the most opportune position," Sands said. "The four companies that are talked about have a better chance of making a good opportunity at any price."
Constellation, which operates the world's largest wine business, has spent over $4 billion in recent years with acquisitions of Svedka vodka, BRL Hardy of Australia, Robert Mondavi of the United States, and Vincor of Canada.
Looking at the acquisition landscape, Sands said premium spirits brands were too pricey, adding that if the company made any wine acquisitions, they would probably be of smaller, niche brands.
"The 7-8 dollar price point is still very good for us, and not well developed within our portfolio," Sands told Reuters TV at the summit. He also said the company was looking to increase penetration into Europe.
"That might require some small, more distribution-oriented acquisitions, maybe some brand acquisitions that do well in a particular region of Europe," Sands said. "So more like that, but not the $1.4 billion acquisition."
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