RNDC and Breakthru Beverage cancel merger

Breakthru Beverage Group and Republic National Distributing Company (RNDC) have terminated their proposed merger following a prolonged review.

The planned union of the two US firms was first announced in November 2017.

In a joint announcement on Friday (5 April), RNDC and Breakthru Beverage Group said the merger’s related Hart-Scott-Rodino filing with the US Federal Trade Commission (FTC) has been withdrawn.

The decision to end the planned merged was made following a “protracted review” by the FTC.

“Drawing strength from RNDC’s robust market position and positive outlook, we intend to continue on our path toward achieving enhanced efficiencies and innovation while carefully evaluating other strategic options,” said Tom Cole, CEO of RNDC.

“We look forward to further strengthening our relationships with our suppliers and customers and serving the many consumers throughout the US who enjoy premium wine and spirits.”

RNDC distributes premium wine and spirits across the US, employing more than 9,500 people nationwide.

Breakthru, itself the result of the 2015 merger between Wirtz Beverage Group and Charmer Sunbelt Group, is the leading North American beverage wholesaler with 7,000 employees. It has distribution operations across the US and Canada.

Greg Baird, Breakthru Beverage CEO, added: “We’ve continued to advance the Breakthru business and our innovation platform and operating model are well positioned for growth.

“We are confident that the strengths and stability of Breakthru, combined with the expertise of our team, uniquely positions us to serve our partners, both now and in the future.”

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Author: Nicola Carruthers {authorlink}