Constellation Brands to Buy SpikeAde for $75 Million, Shares Fall 4.21% After Hours

Constellation Brands Inc. (STZ) said Tuesday it will acquire SpikeAde, a spirit-based ready-to-drink brand in the emerging sports drink-inspired "Ade" segment, for $75 million at closing for 100% ownership, plus up to $278 million in additional payments over five years tied to future performance. The company said its brand-building and distribution capabilities are expected to help SpikeAde expand across the U.S. and strengthen Constellation's position in the fast-growing RTD market. Spirit-based RTD dollar sales rose 25% over the past year, according to the article. On the NYSE in after-hours trading, STZ shares fell 4.21% to $110.80, after closing Tuesday's session up 2.08%.