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Merger made to boost Anheuser-Busch sales
Two firms are merging in order to allow a greater presence across the U.S. in the distribution of Anheuser-Busch products. Hand Family Cos, already oversees distribution operations in Kentucky and Tennessee. Hand Family joining up with BDT Capital Partners LLC will apparently allow them to dominate sales of Anheuser-Busch in other regions of the country as well.
The combining of the two companies appears to provide the opportunity for a number of other acquisitions that will help boost the new company's ability to distribute these products. Hand Family also hopes to enhance their portfolio and continue its growth. It also appears that the combining of the two companies allows for one business to be able to sell Anheuser-Busch products in multiple markets which a number of other previous distributors were unable to accomplish.
Businesses pursuing mergers and acquisitions do have to keep in mind that this is a highly regulated area of law. With the number of legal issues that may arise, companies will need accomplished transactional attorneys to make certain that all federal and state laws are complied with and that any legal challenges are overcome.
Also, there are a number of other procedural matters that will need to be accomplished whenever a merger takes place. Corporate contracts and bylaws will need to be prepared, and clients will always be in need of independent advice and counsel to understand the pitfalls and benefits of pursuing such a venture.
Mergers and acquisitions can be worth billions of dollars. For example, BDT Capital Partners already has a $3 billion investment fund put in place for the purchasing of other companies. However, no business wants to see purchases in this amount spent on ventures that might fail.
Source: Crain's Chicago Business, "Deals create domination in local Anheuser-Busch sales," Lynne Marek, Nov. 3, 2013