US alcoholic drinks distributor Republic National Distributing Company (RNDC) has secured new funding from its lenders.
In a statement on Friday (16 January), the business said it had reached a deal with its lenders for “significant additional financing”.
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RNDC said the latest funds will be used to “support” its operations as it “continues to align its organisational structure, operational capabilities, and portfolio focus to ensure executional excellence”.
Last week, it was confirmed Reyes Beverage Group was in talks to buy assets from its fellow US distributor RNDC.
Reyes then said it was in talks over “potential business transactions in Florida, Hawaii, Illinois, Maryland, South Carolina, Virginia and Washington, DC”.
RNDC CEO Marc Sachs said the negotiations related to “potential transactions involving our businesses” in those seven markets.
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By GlobalDataCommenting on the latest financing development, Sachs said: “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.
“We are committed to ensuring our business remains a strong, profitable, and valuable partner to all we serve, including our suppliers and customers. 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.”
RNDC declined to disclose the size of the financing package, name the lenders involved or specify how the funds will be allocated, when approached by Just Drinks.
The company also did not comment on the current status of talks with Reyes.
Headquartered in Grand Prairie in Texas, RNDC operates across 39 states in the US and the District of Columbia.
A deal with Reyes would mark another significant change to RNDC’s network in the US. Last year, the distributor left California. RNDC had seen the end of major contracts in the Golden State prior to its exit, including Brown-Forman, which shifted its distribution there to Reyes.
Recently, Proximo Spirits announced a shake-up to its distribution network in the US, which included a shift away from RNDC “in all current territories, except for Georgia and New Mexico”.
In a statement, the sales and distribution arm of Mexican spirits maker Becle said it had “re-aligned its route-to-market strategy across the US following a national review of distributor and brokerage performance”.
Proximo did not say what had prompted the review.
