Dual distributor acquisitions
SoCal companies, Classic Beverage and Stone Distributing Company, acquired by Hand Family Companies subsidiary, Sunset Distributing
Sunset Distributing, a subsidiary of Hand Family Companies (HFC), is proud to announce its acquisition of the assets of Stone Distributing Company (SDC) and Classic Beverage, two diversified independent beverage distributors in Southern California. The Sunset business is a wholly owned subsidiary of HFC and its operations will be fully integrated with HFC, a leading beverage distributor with a strong, multi-state presence and more than 75 years of industry experience. This strategic move marks an exciting step forward, improving sales execution and route-to-market service for beer, wine, spirits, and non-alcoholic beverage suppliers and customers throughout Southern California. The transaction is expected to close in approximately 60 days. Arlington Capital Advisors advised SDC in the transaction and financing for the deal will be provided by Wells Fargo and Overland Advantage.
Sunset becomes part of a powerful alcoholic and non-alcoholic beverage distribution network, which includes Lakeshore Beverage (Illinois), Bluegrass Beverage (Kentucky), and TriStar Beverage (Tennessee). With expected annual sales exceeding fifty million cases, HFC is positioned for substantial growth in each of its markets, which now extends to California via the formation of Sunset.
Under the direction of third generation leader, Charles W. Hand Jr. (“JR”), President and CEO of the Hand Family Companies, who will also serve as CEO of Sunset, the company will continue to build on its local strengths. Sunset will retain its experienced sales force and management team, ensuring operational continuity and market insight.
“The combination of the Hand Family Companies’ scale and expertise with the local knowledge and proven talent of the SDC and Classic team creates a powerful route to market in Southern California,” said Hand. “We’re excited about the opportunity to drive meaningful results for our suppliers and customers in the region.”
CJ Sanchez of Classic said, “It is with mixed emotions that I have entered into this agreement to sell the company, but throughout this process, JR and his leadership team have reaffirmed to me that this is the best decision for the company, its wonderful employees, supplier partners and customers. As the business is becoming increasingly about scale to offer great customer service, I am confident that Sunset Distributing will be the perfect company to offer that and much more well into the future.”
SDC General Manager Brian Fried said, “We are thrilled to join the Hand Family Companies and align with their rich legacy as a family-owned organization. Their proven success, commitment to partnership, and passion for brand building deeply resonate with both our suppliers and team. By combining the market strength and experience of SDC and Classic with the Hand Family’s drive to succeed in Southern California, Sunset Distributing is poised to create immense value and unlock exciting opportunities for the beverage industry for years to come.”
Ryan Lake, Managing Director at Arlington Capital Advisors, advisor to SDC said, “It has been a real honor to work with the SDC team on this transaction. SDC is a wonderfully unique business and a pioneer of independent distribution in one of the most exciting and dynamic beverage markets in the world. It is fitting that the Company has found a new home with JR and his innovative team at HFC.”
With a deep commitment to growth and long-term partnerships, Sunset Distributing will leverage HFC’s resources and operational excellence to elevate supplier brands and expand reach in this dynamic and competitive market.