Acquisitions and Divestitures

6 Months Ended

Aug. 31, 2025

Business Combinations [Abstract]

Mergers, Acquisitions and Dispositions Disclosures

ACQUISITIONS AND DIVESTITURES

ACQUISITION

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 11). 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 this transaction:

(in millions)
Cash received from buyer	$	846.5
Net assets sold	(859.7)
Direct costs to sell	(2.5)
Loss on sale of business (1)	$	(15.7)

(1)Included in selling, general, and administrative expenses 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.

Mexicali Brewery sale

In July 2024, we sold the remaining assets classified as held for sale at the canceled Mexicali Brewery.

Assets held for sale

Certain wine and spirits net assets met the held for sale criteria largely in connection with the 2025 Wine Divestitures. The carrying values of these assets held for sale consisted of the following:

	February 28, 2025
(in millions)
ASSETS
Inventories	$	788.7
Prepaid expenses and other	0.5
Property, plant, and equipment	474.4
Intangible assets	127.9
Less: Asset 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 sheets within other accrued expenses and liabilities.