NORWOOD, Mass. (AP) -Martignetti Cos. has reached a preliminary agreement to buy rival United Liquors Ltd. in a deal to create the state’s biggest liquor distributor, with operations in four other New England states as well.
Details of the agreement between Norwood-based Martignetti and Braintree-based United were still being worked out Monday, and a final agreement could be weeks or months away, said Pam McDermott, a spokeswoman for the two companies.
The combined company would distribute liquor to buyers including package stores, bars and restaurants in every New England state except Connecticut.
McDermott declined to comment on terms of the deal between the two privately held companies and its impact on the two companies’ combined work force of about 1,300.
The deal will position the combined company against Avon-based Horizon Beverage Co., the only other major liquor distributor in Massachusetts.
“This is consistent with the consolidation in the industry, and other major markets are down to two or three major players,” McDermott said.
Martignetti’s purchase of United Liquors includes shares of United owned by Miami-based Southern Wine and Spirits of America Inc. The two companies announced a partnership in February 2005 in which Southern Wine & Spirits gained a 25 percent ownership stake in United.
Martignetti, with about 700 employees, is a family owned business founded in 1908. It operates a 435,000-square-foot warehouse in Norwood.
United Liquors, founded in 1934, supplies about 6,000 bars and restaurants and 2,500 liquor stores in Maine, Massachusetts and New Hampshire.
AP-ES-08-07-06 1516EDT
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