US distributor RNDC has found a new buyer for its Kentucky assets.
Republic National Distributing Company (RNDC) has signed a letter of intent to sell the operations in the state to KEG 1 River City, a subsidiary of local drinks distribution company K1 Management Services.
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In a statement, Keg 1 River City said the deal would add around 2 million cases annually to the company’s portfolio.
In May, Breakthru Beverage signed a letter of intent for RNDC’s interests in its Kentucky and Indiana joint venture with another US distributor, National Wine & Spirits.
However, that deal has fallen through, a RNDC spokesperson confirmed to Just Drinks.
“RNDC is no longer moving forward with Breakthru regarding a potential transaction involving RNDC’s interest in its joint venture businesses in Kentucky and Indiana,” they said.
“Despite not pursuing the potential transaction with Breakthru, RNDC remains committed to pursuing a sale of its interests in its joint venture businesses.”
The company spokesperson added: “The decision by Breakthru has no impact on our other pending sale transactions. We are continuing to work with the other potential purchasers to progress the potential transactions with the intention of closing those transactions in court as soon as possible.”
The president and chief operating officer at K1 Management Services, Curt McCamon, said: “The opportunity to acquire RNDC’s Kentucky operations would meaningfully enhance our portfolio and our territory in an extraordinary way that few opportunities ever could.”
RNDC has been divesting its operations in recent months. The group also began a voluntary Chapter 11 process last month to carry out an “orderly wind down” of its remaining operations.
The deal with Keg 1 River City remains subject to approval by the US Bankruptcy Court for the Southern District of Texas due to the Chapter 11 filing. It also requires definitive documentation and other regulatory approvals.
Both parties aim to close the transaction in the fourth quarter of 2026. They also “intend to remain focused on supporting suppliers, customers and employees while working toward a potential closing,” a joint statement from both parties said.
For Keg 1 River City, the agreement builds on it taking over distribution of the full Brown-Forman portfolio last year, the statement added.
“KEG 1 will bring a commitment to supplier partnerships and a long-term investment approach that will ensure continuity and stability in the Kentucky market,” said Marc Sachs, President and CEO of RNDC.
“This potential transaction, if approved, will maximize value for all stakeholders.
“We are committed to ensuring a smooth transition through the Bankruptcy Court approval process.”
