E&J Gallo Winery (Gallo) has finalised the acquisition of more than 30 wine brands from Constellation Brands in a deal worth around $810m.

Under the agreement, Gallo paid nearly $560m in cash at closing. The deal consideration also includes the provision of up to $250m in earnout payments based on the fulfilment of brand performance targets over two years after closing.

The deal secured the nod of the Federal Trade Commission (FTC) on 23 December.

E&J Gallo Winery CEO Ernest J Gallo said: “The closing of this transaction represents our company’s long-term commitment to the wine industry. We are pleased to welcome the new employees joining the Gallo family.”

Under the deal, Gallo acquired wine brands including Arbor Mist, Black Box, Clos du Bois, Estancia, Franciscan, Hogue, Manischewitz, Mark West, Ravenswood, Taylor, Vendange and Wild Horse.

The deal also allowed Gallo to strengthen its footprint with the addition of five wineries, which are located in California, Washington, and New York, as well as Constellation’s Polyphenolics business.

In a separate transaction with Constellation, Gallo also agreed to take over the Nobilo New Zealand Sauvignon Blanc brand and certain related assets and liabilities for nearly $130m.

Under the FTC consent order, Gallo agreed to sell two of its dessert brands, Fairbanks and Sheffield, to Precept Brands.

In a separate development, Constellation completed the divesture of certain brands used in its grape juice concentrate business, as well as related inventory, interests in certain contracts and liabilities to Vie-Del Company.

Additionally, the FTC cleared divesture of Constellation’s Paul Masson Grande Amber Brandy brand, along with related inventory and interests in certain contracts for approximately $255m to Sazerac, which should conclude this month.