US beverage distributor Southern Glazer’s Wine & Spirits has bought US peer Horizon Beverage Group for an undisclosed sum.
Southern Glazer’s said the deal would add the states of Massachusetts and Rhode Island to its operations, expanding its US footprint to 47 states.
Horizon Beverage will operate in future under the company names Southern Glazer’s Wine & Spirits of Massachusetts and Glazer’s Wine & Spirits of Rhode Island.
The current leadership teams for Horizon Beverage in both states “will continue leading operations in those markets,” Southern Glazer’s said.
“All of Horizon’s family members and leadership team, including co-chairmen, Bob Epstein and Jim Rubenstein, will also continue in their current roles to help ensure a smooth transition for all employees, suppliers, and customers,” the distribution group added.
Horizon Beverage was founded in 1933. The group employs roughly 600 people operating approximately 800,000 square feet of warehouse space in New England and has a fleet of around 100 vehicles.
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Horizon Beverage’s co-chairman Rubenstein said on the acquisition: “Horizon’s trading partners will gain access to Southern Glazer’s world-class commercial, supply chain, digital, and data insights capabilities.”
The deal is still subject to regulatory approval.
Last month, it was reported the US Federal Trade Commission (FTC) was preparing a lawsuit against Southern Glazer’s over alleged anti-competitive pricing practices.
The Florida-based beverage logistics giant is alleged to have violated the 1936 Robinson-Patman Act, which prohibits suppliers from offering cheaper prices to bigger retailers “at the expense of their smaller competitors”.
In March, Southern Glazer’s reached a court settlement with a restaurant owner last year who argued Southern Glazer’s had violated California liquor laws through its late charges.
It claimed the company had been charging 2% per month on late payments despite state law only allowing a 1% monthly charge.
Southern Glazer’s was charged a $5.5m gross settlement amount and was ordered to write off remaining late fees, which are estimated to exceed $44.1m.
This article was originally published by a www.just-drinks.com . Read the Original article here. .