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By Abigail Summerville
NEW YORK (Reuters) – Funding agency Meritage (NYSE:) Group is exploring the potential sale of Columbia Distributing that would worth the U.S. beverage distributor at about $2 billion, together with debt, in accordance with individuals acquainted with the matter.
Meritage, which was launched by billionaire Nat Simons after he left hedge fund Renaissance Applied sciences in 1997, is working with funding bankers at Morgan Stanley on a sale course of for Columbia, which is among the largest U.S. beverage distributors, the sources mentioned, requesting anonymity because the discussions are confidential.
Potential patrons of Columbia embody household workplaces, non-public fairness companies, and rival beverage distributors, a lot of that are family-owned, the sources mentioned, cautioning {that a} deal shouldn’t be assured.
Portland, Oregon-based Columbia generates greater than $200 million of annual earnings earlier than curiosity, taxes, depreciation, and amortization, the sources mentioned.
Columbia, Meritage and Morgan Stanley declined to remark.
Based in 1935 by Chris Maletis Sr., Columbia is a provider of each alcoholic and non-alcoholic drinks to retailers and restaurant chains in Oregon, Washington and California.
In 1993, Maletis’ grandson Ed Maletis purchased the rights to distribute the Miller Brewing model for the Portland market, thus increasing the corporate’s protection of the Pacific Northwest. Columbia at the moment distributes greater than 300 manufacturers together with Purple Bull, Heineken (AS:), Corona and Smirnoff, in accordance with its web site.
In 2008, Columbia additional expanded its footprint by means of a three-way merger with rivals Mt. Hood Beverage and Gold River Distributing.
Meritage, which manages about $12 billion of belongings as of January this 12 months, invests in areas together with private and non-private fairness, credit score and actual property. It has workplaces in New York Metropolis, San Francisco, and Greenwich, Connecticut.
Meritage acquired Columbia in 2012 for an undisclosed sum. The funding agency can be in talks to promote tire retail chain Les Schwab Tire, Reuters reported earlier in August.
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