Wine Warehouse, the third-largest wholesaler of alcoholic beverages in California, has agreed to be acquired by the Breakthru Beverage Group. Terms of the deal were not disclosed.
Wine Warehouse, which is based in Commerce, was founded in 1973 by avid wine collectors Bob and Jim Myerson and has annual revenues of approximately $800 million.
New York-based Breakthru Beverage Group had estimated revenues of $6.6 billion last year.
“The dynamics of the industry are changing and the momentum we have makes this an ideal time to begin the next chapter with Breakthru,” James P. Myerson, the chairman and chief executive officer of Wine Warehouse, said in a release. “We know they will invest in growing the business, bring innovations to the market and use their strong relationships and expertise to distinguish us among both the suppliers and customers we serve.”
Tom Bené, president and chief executive of Breakthru Beverage Group, said he is excited about his company’s expansion into California.
“We intend to make significant investments and be a competitive force in the market,” said Bené. “Breakthru has built a consistent and scalable business that makes us a very attractive partner to both suppliers and customers nationwide. We will bring a consumer-led approach as we unite the expertise of the California team with the culture, scale and capabilities that Breakthru can provide to grow the business.”
The acquisition will mark Breakthru’s third in the past year after it purchased Missouri-based Major Brands and J.J. Taylor, based in Minnesota.
A Breakthru Beverage spokesperson said that the company has plans to increase employee numbers in California.
“Breakthru is very excited about the opportunities in California and is seeking to invest above and beyond the positions that exist today. The intention is to create opportunities for new and current associates as we seek to expand our reach in the market.”
Under the terms of the deal, Wine Warehouse’s executive team will stay in place.
“We are committed to maintaining the existing strong leadership team in California and have the utmost confidence that they will continue to deliver as a strong marketplace option on behalf of our supplier and customer partners,” Bené said.