In Middle-Tier Mega-Deal, RNDC Says Reyes Will Buy It in Seven Markets (Developing)

Less than one year after Republic National Distributing Company’s catastrophic collapse in California, VinePair has learned that the country’s second-largest wine and spirits wholesaler will sell a portion of its national operation to the country’s largest beer distributor: Reyes Beverage Group.

“[W]e have aligned with Reyes Beverage Group on key economic terms for them to acquire RNDC’s operations in Florida, Hawaii, Illinois, Maryland, South Carolina, Virginia and Washington, D.C.,” wrote newly appointed president and chief executive officer Marc Sachs, in a Tuesday morning memo to RNDC employees shared with me by a current employee, who requested anonymity to avoid retaliation by the firm. “Upon completion of the transaction, Reyes plans to run the newly acquired businesses separately from their current operations.”

RNDC did not immediately return requests for comment. Laurel Slick, RBG’s vice president of corporate affairs, confirmed the company was “in active discussions” with RNDC “regarding potential business transactions” in the states mentioned in Sachs’ note, but declined to elaborate.

Trade outlets Beer Business Daily and Shanken News Daily first reported RBG’s statement Tuesday morning. Sachs’ memo to RNDC employees suggests the transaction is much further along than discussion, even if it’s not quite done yet. “While there are still a number of steps we need to finalize the deal, I hope that you join me in recognizing this positive development,” he wrote. “In the meantime, it is business as usual.”

This is a developing story and will be updated with more information as it becomes available. If you have tips to share about this deal, please submit them by emailing dave@dinfontay.com or texting dinfontay.11 on Signal. You can remain anonymous.

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