US-based alcoholic beverages producer Constellation Brands has expanded its footprint in the country with the acquisition of San Diego-based Ballast Point Brewing & Spirits.

Under the terms of deal valued at $1bn, Constellation Brands will add the Ballast Point beer portfolio that includes more than 40 different styles of beer including Sculpin and Grapefruit Sculpin to its existing products line.

The craft beer producer will continue to operate as a stand-alone company with its existing management team and employees running the day-to-day operations.

Subject to customary closing conditions, the transaction is expected to close by the end of this year.

Ballast Point Brewing & Spirits founder Jack White: "We started this business nearly 20 years ago with a vision to produce great beer that consumers love and to do it the right way.

"To achieve that vision, we needed to find the right partner. The team at Constellation shares our values, entrepreneurial spirit and passion for beer, and has a proven track record of helping successful premium brands reach the next level of growth and scale."

The new acquisition is expected to enable Constellation to compete in the fast-growing craft beer segment, further strengthening its position in the highest end of the US beer market.

Constellation Brands CEO Rob Sands said: "Along with imports, craft beer is a key driver of growth and premiumization within the beer industry, with craft doubling its share of the US beer market in the last five years. Ballast Point has certainly been a key driver of that growth.

"Their business philosophy and entrepreneurial spirit perfectly align with our culture and we look forward to strengthening our position in the high-end beer segment with what is arguably the most premium major brand in the entire craft beer business."

Ballast Point targets to sell nearly four million cases this year, nearly $115m, representing growth of more than 100% when compared to 2014.