Republic National Distributing Co. LLC, a distributor and broker of premium wine and spirits with major operations in the Dallas-Fort Worth area, and Breakthru Beverage Group LLC , a Cicero, Illinois-based distributor and broker of beer, wine and spirits in the U.S. and Canada, have announced plans to merge, forming a $12B alcohol distributor.
The two companies pointed to industry changes as one of the reasons for the merger. They also cited the need to facilitate investments in technology that will enhance all aspects of their business, from supply chain management, customer and supplier connectivity, e-commerce, predictive analytics, digital marketing, data transparency, consumer experience and operational efficiency.
“The merger of RNDC and Breakthru will create strategic opportunities that will benefit our associates and our business partners in a rapidly changing and highly competitive marketplace. Much more than a growth opportunity, we are entering this venture to create something that is different, sustainable and transformative,” said RNDC President & CEO Tom Cole. “Together, our deep bench of focused, diverse associates will bring great and unique advantages to our suppliers, our customers and the consumers who enjoy the products we represent.”
Under the terms of the agreement Cole will serve as
CEO; Bob Hendrickson as chief operating officer; Danny Wirtz as chief growth and strategy officer; and Greg Baird as chief integration officer. E. Lloyd Sobel’s role will be announced along with other key senior management appointments prior to the close of the transaction.
The transaction is expected to close late in the second calendar quarter of 2018 subject to regulatory approvals and other customary closing conditions.
RNDC is a distributor of premium wine and spirits with operations in Alabama, Arizona, Colorado, District of Columbia, Florida, Indiana, Kentucky, Louisiana, Maryland, Michigan, Mississippi, Nebraska, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Texas, Virginia and West Virginia. RNDC employs more than 9,500 associates nationwide. According to the City of Grand Prairie, Republic has 700 employees at its location there. Breakthru has about 7,000 employees in the U.S.