Investment firm Meritage Group is exploring the potential sale of Columbia Distributing that could value the U.S. beverage distributor at about $2 billion, including debt, according to people familiar with the matter.
Meritage, which was launched by billionaire Nat Simons after he left hedge fund Renaissance Technologies in 1997, is working with investment bankers at Morgan Stanley on a sale process for Columbia, which is one of the largest U.S. beverage distributors, the sources said, requesting anonymity as the discussions are confidential.
Potential buyers of Columbia include family offices, private equity firms, and rival beverage distributors, many of which are family-owned, the sources said, cautioning that a deal is not guaranteed.
Portland, Oregon-based Columbia generates more than $200 million of annual earnings before interest, taxes, depreciation, and amortization, the sources said.
Columbia, Meritage and Morgan Stanley declined to comment.
Founded in 1935 by Chris Maletis Sr., Columbia is a supplier of both alcoholic and non-alcoholic beverages to retailers and restaurant chains in Oregon, Washington and California.
In 1993, Maletis’ grandson Ed Maletis bought the rights to distribute the Miller Brewing brand for the Portland market, thus expanding the company’s coverage of the Pacific Northwest. Columbia currently distributes more than 300 brands including Red Bull, Heineken, Corona and Smirnoff, according to its website.
In 2008, Columbia further expanded its footprint through a three-way merger with rivals Mt. Hood Beverage and Gold River Distributing.
Meritage, which manages about $12 billion of assets as of January this year, invests in areas including public and private equity, credit and real estate. It has offices in New York City, San Francisco, and Greenwich, Connecticut.
Meritage acquired Columbia in 2012 for an undisclosed sum. The investment firm is also in talks to sell tire retail chain Les Schwab Tire, Reuters reported earlier in August.
Source: Reuters.com