Acquisitions and Divestitures

12 Months Ended

Feb. 28, 2026

ACQUISITIONS, DIVESTITURES, AND RESTRUCTURING

ACQUISITIONS AND DIVESTITURES

ACQUISITIONS

Sea Smoke

In June 2024, we acquired the Sea Smoke business, including a California-based luxury wine brand, vineyards, and a production facility for $158.7 million, net of closing and post-closing adjustments. This transaction also included the acquisition of goodwill, inventory, and a trademark. The results of operations of Sea Smoke are reported in the Wine and Spirits segment and have been included in our consolidated results of operations from the date of acquisition.

DIVESTITURES

2025 Wine Divestitures

On June 2, 2025, we sold and, in certain instances, exclusively licensed the trademarks of a portion of our wine and spirits business, primarily centered around our then-owned mainstream wine brands and associated inventory, wineries, vineyards, offices, and facilities. The net cash proceeds from the 2025 Wine Divestitures were used for repayment of debt (see Note 13). Prior to the completion of the 2025 Wine Divestitures, we recorded the results of operations of the divested and exclusively licensed brands in the Wine and Spirits segment. The following table summarizes the net loss recognized in connection with these divestitures for the year ended February 28, 2026:


(in millions)
Cash received from buyer	$	845.9
Net assets sold	(874.1)
Direct costs to sell	(2.8)
Loss on sale of business (1)	$	(31.0)

(1)Included in gain (loss) on sale of business within our consolidated results of operations.

SVEDKA Divestiture

On January 6, 2025, we sold the SVEDKA brand and related assets, primarily including inventory and equipment. The net cash proceeds from the SVEDKA Divestiture were used for general corporate purposes, including funding share repurchases, capital expenditures, and repayment of debt. Prior to the SVEDKA Divestiture, we recorded the results of operations of the SVEDKA brand in the Wine and Spirits segment. The following table summarizes the net gain recognized in connection with this divestiture, for the year ended February 28, 2025:


(in millions)
Cash received from buyer	$	409.2
Net assets sold	(139.7)
Direct costs to sell	(3.5)
Gain on sale of business (1)	$	266.0

(1)Included in gain (loss) on sale of business within our consolidated results of operations.

Craft Beer Divestitures

In June 2023, we completed the Craft Beer Divestitures. Prior to the Craft Beer Divestitures, we recorded the results of operations of such craft beer brands in the Beer segment.

Assets held for sale

The 2025 Wine Divestitures largely resulted in both (i) $879.8 million of wine and spirits net assets being reclassified to held for sale as of February 28, 2025, and (ii) a $478.0 million assets held for sale impairment. The impairment loss was included in asset impairment and related assets within our consolidated results of operations for the year ended February 28, 2025. The carrying value of assets held for sale as of February 28, 2025, consisted of the following:



(in millions)
ASSETS
Inventories	$	788.7
Prepaid expenses and other	0.5
Property, plant, and equipment, net	474.4

Intangible assets	127.9

Less: Assets held for sale impairment	(478.0)
Assets held for sale	913.5
LIABILITIES

Other accrued expenses and liabilities (1)	33.7

Net assets held for sale	$	879.8

(1)Liabilities held for sale are included in the consolidated balance sheet within other accrued expenses and liabilities.