RNDC secures new lender financing as Reyes Beverage Group discusses potential asset deals across seven US markets
US alcohol distributor RNDC obtains fresh lender backing while talks with Reyes continue over possible multi-state asset transactions.
USA – Republic National Distributing Company (RNDC), the second-largest alcohol distributor in the United States, has secured new financing from its lenders as it navigates major changes across its national network.
The company confirmed it has reached an agreement for “significant additional financing” to support its operations during an ongoing period of restructuring and portfolio realignment.
In a statement, RNDC said the funding will be used to “support” the business as it “continues to align its organisational structure, operational capabilities, and portfolio focus to ensure executional excellence.” The distributor did not disclose the size of the financing package.
The announcement comes as RNDC remains in talks with Reyes Beverage Group over potential asset sales in several states.
Reyes recently confirmed it was discussing possible transactions in Florida, Hawaii, Illinois, Maryland, South Carolina, Virginia and Washington, DC, following RNDC’s withdrawal from the California market last year.
RNDC chief executive Marc Sachs said the discussions involve “potential transactions involving our businesses” in the seven markets. He added that the latest funding underlines the company’s ability to continue operating while those negotiations are ongoing.
“We are pleased to have the continued support from our lending partners as we deliver against our priorities and pursue opportunities that strengthen our business and our role in the industry,” Sachs said.
“We are committed to ensuring our business remains a strong, profitable, and valuable partner to all we serve, including our suppliers and customers.”
Sachs also acknowledged the impact of recent changes on RNDC’s partners. “We are grateful for the patience and cooperation of our suppliers, the trust our customers place in us every day, and the dedication of our associates who deliver in the marketplace,” he said.
RNDC, which is headquartered in Grand Prairie, Texas, operates across 39 US states and the District of Columbia. The company exited California on 1 September last year after losing several major distribution contracts, including Brown-Forman, which transferred its business in the state to Reyes.
Reyes Beverage Group is part of Reyes Holdings, the sixth-largest privately held company in the US, generating about $40 billion in annual sales.
The group also owns foodservice distributor Martin Brower and soft-drink bottlers Great Lakes Coca-Cola and Reyes Coca-Cola Bottling.
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