Constellation Brands has signed an agreement with America’s oldest distillery Sazerac Company to sell its Paul Masson Grande Amber Brandy brand, as well as associated inventory and interests in certain contracts for approximately $255m.

Completion of the deal is expected in the second quarter of fiscal 2021, subject to the certain purchase price and closing adjustments.

Constellation Brands president and CEO Bill Newlands said: “These agreements represent another step forward in our efforts to transform our wine and spirits business.

“Thanks to the continued hard work of our Constellation team members, together with our distributor and retailer partners, our strategy continues to gain momentum. We look forward to closing these transactions in the coming months.”

Additionally, Constellation has signed another agreement with E & J Gallo Winery for divesting its Nobilo Wine brand and certain related assets and liabilities for $130m.

The deal was first announced in December 2019 and an amended revised deal announced was announced in May 2020 in which Constellation agreed to some of its wine and spirits portfolio and certain related facilities to E & J Gallo Winery for nearly $1.1bn.

Constellation noted that the amended revised deal is subject to FTC review and clearance and governmental approvals, which is also expected to take place in the second quarter of fiscal 2021.

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In May, Constellation Brands increased its stake in the Canadian cannabis company Canopy Growth.

The deal was executed by Constellation’s wholly-owned subsidiary Greenstar Canada Investment by exercising warrants for shares worth around C$245m ($173m), originally issued in November 2017.