Topic: How To Invest

Hello, Pat: Is there a reasonable possibility that Constellation Brands might now try to buy competitor Andrew Peller Ltd.? Thanks.

Article Excerpt

Andrew Peller Ltd., $28.12, symbol ADW.A on Toronto (Shares outstanding: 14.3 million; Market cap: $418.1 million, www.andrewpeller.com), is Canada’s second-largest wine producer, after Constellation Brands (symbol STZ on New York). It accounts for 14.2% of the country’s wine sales, and 37.1% of wines produced in Canada. The company is also a recommendation of our Successful Investor newsletter. On March 18, 2016, Dr. Joseph A. Peller—the founder and former CEO of the winemaker—died on his 90th birthday. With his death, the Peller family now controls 66.6% of Andrew Peller shares, so any takeover bid would need its approval. Even so, it’s possible that the heirs could seek to sell the company to a competitor such as Constellation Brands. That adds to the already-strong appeal of Andrew Peller stock. The company continues to benefit from strong sales of its premium-priced brands. These include the wine it has made and distributed under the name of hockey star Wayne Gretzky since 2011. That label…