Southern Wine & Spirits of America, Inc. (“Southern") and Glazer’s, Inc.
(“Glazer’s"), two of the country’s leading wine and spirits
distributors, today announced the signing of a definitive agreement that
will create the largest North American wine and spirits distribution
company, serving supplier and customer partners from coast to coast.
The new company, Southern Glazer’s Wine and Spirits, LLC (“Southern
Glazer’s"), will distribute more than 150 million cases of wine and
spirits annually, cover nearly 90% of the legal drinking age (LDA)
population in the U.S., employ more than 20,000 team members, and have
operations in 41 states plus the District of Columbia, the Caribbean,
and Canada. The company will be headquartered in Miami, with significant
ongoing operations, systems, executives, and team members to be based in
Dallas.
The new company’s leadership team and Board of Directors will be
composed of representatives from both Southern and Glazer’s. Harvey R.
Chaplin will serve as Chairman, and Bennett Glazer will serve as
Executive Vice Chairman. The company will be managed by an Office of the
CEO and President, with Wayne E. Chaplin serving as Chief Executive
Officer and Sheldon (“Shelly") Stein serving as President. Wayne Chaplin
will be responsible for setting the company’s overall strategic
direction and day-to-day commercial and operational execution. Shelly
Stein will be responsible for leading business development, merger and
acquisition activities, and long-term growth initiatives on a global
basis, and will assist with the strategic direction of the company as
well as select key supplier relationships.
Harvey R. Chaplin, Chairman of Southern, said, “We are delighted to
combine with Glazer’s. Together, these two family-owned, industry
leading organizations—each with a great history, strong values and
entrepreneurial spirit, unmatched talent, and a track record of
successful performance—will solidify our standing for years to come as
the most capable and effective distributor in the industry."
Bennett Glazer, Chairman of Glazer’s, commented, “We are embracing a
uniquely compelling opportunity to unite our proud family traditions and
create an undisputed industry leader for years to come. Our mutual
dedication to integrity and transparency, our commitment to our
communities, the talent and professionalism of our people, and our drive
to add value to our partners’ businesses will continue to differentiate
us clearly from the competition."
Wayne E. Chaplin, President and Chief Executive Officer of Southern,
added, “The combination of two of the wine and spirits industry’s
leading distributors will create unmatched value for our business
partners and position us for broader supplier alignments, which will
translate into even greater opportunities for our team members. Southern
and Glazer’s have highly complementary cultures marked by an
uncompromising commitment to superior service, driven by the most
talented and experienced teams in the industry. Our new company will
have the exceptional opportunity to build a combined organization that
capitalizes on the extraordinary legacies and best practices of both
companies. Quite simply, we will have the best team and the most
extensive reach in the business."
Shelly Stein, President and Chief Executive Officer of Glazer’s,
concluded, “This is a historic day for our companies and for our
industry. With our complementary footprints, Southern Glazer’s will be
the first truly cross-continental wholesaler. Our combined solution will
offer suppliers a more efficient and effective route to market that will
help their brands reach their fullest potential. By drawing from the
best talent pool in the industry, strong customer relationships, and
robust business intelligence products and services across both
companies, we intend to build on our combined footprint, and enhance our
current strategic relationships while forming new ones. We are excited
to establish Southern Glazer’s as the distributor of choice for valued
customers and suppliers across North America."
Additional leadership roles at Southern Glazer’s, reporting to the CEO,
will include: Brad Vassar as Executive Vice President and Chief
Operating Officer; Mel Dick as Senior Vice President and President, Wine
Division; Steven Becker as Executive Vice President, Treasurer &
Compliance; Thomas Greenlee as Executive Vice President, Finance; Lee
Hager as Executive Vice President, Secretary and Administration; and
Alan Greenspan as Executive Vice President and General Counsel.
Furthermore, Glazer’s Executive Vice President, Chief Operating Officer
Rob Swartz will lead the Integration Management Office (IMO), partnering
with Southern’s Executive Vice President, Commercial Strategy Kevin
Fennessey.
Both companies have successful track records of rapidly executing
business combinations and supplier alignments without business
disruption, and a joint IMO team will ensure Southern Glazer’s
effectively utilizes the best business practices and talent of both
organizations to make the transition seamless for suppliers and
customers alike.
The majority of Glazer’s malt beverage distribution business is not
included in the transaction. The business within Glazer’s existing
MillerCoors footprint will operate as a separate company, Glazer’s Beer
& Beverage, under the continued ownership of the Glazer family. The
remainder of Glazer’s malt beverage business and Southern’s malt
beverage business will become part of Southern Glazer’s.
The transaction is expected to be completed in the second quarter of
2016, subject to regulatory approvals.
BofA Merrill Lynch served as financial advisor to Southern and Moelis &
Company served as financial advisor to Glazer’s with respect to the
transaction.
About Southern Wine & Spirits of America, Inc.
Southern Wine & Spirits of America, Inc. is the nation’s largest wine
and spirits distributor and broker with operations in 35 markets. The
multi-state distributor currently operates in: Alabama, Alaska, Arizona,
California, Colorado, Delaware, the District of Columbia, Florida,
Kentucky, Hawaii, Idaho, Illinois, Indiana, Iowa, Maryland, Maine,
Michigan, Minnesota, Mississippi, Montana, Nevada, New Hampshire, New
Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, South
Carolina, Utah, Vermont, Virginia, Washington, West Virginia and
Wyoming. Southern also holds operating licenses and permits in Nebraska,
North Dakota and South Dakota. On a national basis, Southern Wine &
Spirits of America, Inc. employs more than 14,500 team members. Southern
urges all retail customers and adult consumers to market, sell, serve
and enjoy its products responsibly.
For more information about Southern and its responsible consumption
program, see: http://www.southernwine.com.
About Glazer’s, Inc.
Glazer’s, one of the country’s largest privately held companies,
currently operates in 15 states, Canada and the Caribbean, and is one of
the nation’s largest distributors of wine, spirits and malt beverage
products. The company has operations in Alabama, Arizona, Arkansas,
Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi,
Missouri, Ohio, Oklahoma, Tennessee, Texas, Canada, and the US Virgin
Islands. The third-generation family business was founded in Dallas in
1933.
For more information, please visit our website at www.glazers.com.
Contact:
Press Contact:
Kekst
Mark Semer
212-521-4800