Vermont’s Farrell Distributing has struck a deal with G.Housen Inc. to acquire its entire portfolio of beverage brands in Vermont. G.housen is based in Keene, N.H., and also operates a third distributorship in Massachusetts.
Specific terms of the deal were not disclosed and the transaction is expected to close on October 30, the two companies said.
In separate press statements, both companies said the transaction would “strengthen their businesses and improve service to suppliers, retailers and beverage consumers.”
“This is a good deal between two longtime family businesses that will help both companies improve our scale and achieve efficiencies that offset rising cost pressures in the logistics business,” Farrell Distribution CEO David Farrell said in a statement.
Farrell — which sells Anheuser-Busch products as well as a variety of local crafts, imports, ciders, wines and non-alcoholic beverages — operates out of two warehouses in South Burlington and Rutland and will now distribute the A-B portfolio statewide. Although Farrell distributed other beverage products throughout the entire state prior to the deal, g.housen sold A-B products across one quarter of the geography, marketing director Ryan Chaffin told Brewbound.
“One of the exciting pieces is that it fully aligns us with A-B for the entire state,” he said.
The acquisition will also help Farrell “get back to the market share it enjoyed years ago,” Chaffin said.
“With the addition of the whole portfolio, we expect to see another 10 percent market share of beer and 10 percent market share of wine coming in,” he added.
Chaffin estimates that, following the acquisition, Farrell Distributing will control about 50 percent market of statewide beer sales.
“Craft is growing and our A-B high end is also growing,” he said. “Just like everybody else, it is certainly rising and Vermont is a leader in that area.”
The N.H and Mass. G.Housen portfolios, and employees, are not affected by the transaction. A majority of G.Housen employees in Vermont will also be offered the opportunity to transition to Farrell Distributing, the company said.
Additional details are included in the press release below.
South Burlington, VT – Farrell Distributing Company of South Burlington, Vermont and g.housen, Inc. of Keene, New Hampshire have reached an agreement that will transfer ownership of g.housen’s portfolio of beverage brands in Vermont to Farrell Distributing.
Both companies said the transaction would strengthen their businesses and improve service to suppliers, retailers and beverage consumers. The g. housen portfolio of brands includes some of the nation’s top national wine, beer and non-alcoholic beverage brands, including Anheuser-Busch, and will compliment the locally driven portfolio Farrell currently manages.
“This is a good deal between two longtime family businesses that will help both companies improve our scale and achieve efficiencies that offset rising cost pressures in the logistics business,” said David J Farrell, president and CEO of Farrell Distributing Company. “It also significantly enhances our ability to drive the business plans for our brands, and reinforces the link each company has to its home state and local communities.”
Richard Clarke, owner of g.housen, Inc. agreed. “We’re really happy that g.housen’s Vermont portfolio will transition to another family business,” Clarke said. “The efficiency both companies gain will be a useful tool that will deliver benefits to all of our partners – our brands, retailers and consumers. It also positions both companies for ongoing success and additional opportunities.”
Closing on the transaction will occur October 30th, 2015. A majority of g.housen employees will be offered the opportunity to transition to Farrell Distributing.
Farrell Distributing General Manager Todd Bouton said g.housen would be unified with Farrell’s operations incrementally with full integration dovetailing the completion of a 25,000 square foot expansion of the company’s South Burlington facility in the spring of 2016.
“We look forward to continuing to be a first-class distributor, employer and contributing member of the communities we serve.” said Ryan Chaffin, director of marketing for Farrell Distributing. “With this deal, quality, service and community will continue to be the retail focus, vision and commitment for Farrell’s entire portfolio across all segments. We look forward to building on the work g.housen has done in Vermont.”
ABOUT G.HOUSEN
Founded in 1982, g.housen is a leading multi-brand distributor of premium beer, wine and soft beverages in New Hampshire, Vermont and Massachusetts. The third-generation family business is rooted in the traditional New England values of hard work, innovation and rock-solid reliability. g.housen is headquartered in Keene, New Hampshire. For more information visit: http://www.ghousen.com
ABOUT FARRELL DISTRIBUTING COMPANY
Thomas A. Farrell and several brothers founded Farrell Distributing in 1933 as M. M. Farrell & Sons, Vermont’s first licensed distributor after prohibition. Today, the company operates facilities in South Burlington and Rutland distributing Anheuser-Busch products, 25 Vermont Craft Brands along with other beers and more than 900 wine brands from small family wineries to some of the largest and most trusted wine brands in the business. Throughout its history, Farrell Distributing has maintained a strong commitment to social responsibility, participating in responsible drinking campaigns and partnering with local organizations to help those in need throughout Vermont.
http://www.farrelldistributing.com