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Anheuser-Busch and Hand Family Cos. Announce CITY Beverage Agreement



  Anheuser-Busch and Hand Family Cos. Announce CITY Beverage Agreement

Hand Family Also to Partner with BDT Capital to Acquire River North Sales and
                                   Service

Business Wire

ST. LOUIS & CLARKSVILLE, Tenn. -- November 2, 2013

Anheuser-Busch and the Hand Family Cos., a family-owned beer distributor based
in Tennessee, today announced an agreement for Hand to acquire
Anheuser-Busch’s 30 percent interest in CITY Beverage–Illinois LLC and partner
alongside BDT Capital Partners in its acquisition of 100 percent of River
North Sales and Service LLC in two separate transactions, creating the largest
distributor in Illinois and the Chicago metropolitan area market selling
approximately 23.5 million annual case equivalents. Terms of the transaction
were not disclosed.

BDT Capital, which advises and invests in closely held companies, has owned
its 70 percent stake in CITY since 2010. Concurrent with Hand’s investment
into CITY, BDT has also agreed to purchase 100 percent of River North from
Yusef D. Jackson. River North will subsequently be combined with CITY. Both
transactions are pending supplier and regulatory approvals and are scheduled
to close by the end of the year.

J.R. Hand, President and Chief Executive Officer of Hand, will serve in the
same role for the combined entity while maintaining his position overseeing
Hand’s distribution operations in Tennessee and Kentucky.

“The Hand family has operated successful Anheuser-Busch distributorships in
Tennessee and Kentucky for many years,” said David Almeida, vice president of
sales for Anheuser-Busch. “Their operations have a demonstrated track record
of sales and operational excellence. These are critical traits in the
competitive Chicago market, and we believe their years of experience and
desire to win will serve us well in this important market. With the sale of
our stake, the CITY Beverage and River North operations will be combined,
creating a strong, competitive and consolidated AB distributorship in the
Chicago market.”

“We are thrilled for Hand Family Companies to enter the Chicago market. My
wife's family is from the Chicagoland area and we consider the city a second
home,” said J.R. Hand. “Our company has been fortunate to see significant
growth in recent years. The Chicago acquisition is another big step forward
and will enhance our portfolio in a market we believe can continue to grow. I
am excited about our partnership with BDT and look forward to the future.”

“We have enjoyed a productive relationship with Anheuser-Busch over the course
of the last three years, and we look forward to continuing to serve the
greater Chicago and suburban markets alongside very talented operators. J.R.
and his organization will be a great complement to the strong team at CITY and
River North,” said Chip Dunn, a BDT Managing Director. “Combining these
companies will serve to unify the Anheuser-Busch distribution network in
metropolitan Chicago and enable us to better serve our customers and
consumers.”

About Hand Family Companies

Founded in 1949, Hand Family Companies is an Anheuser-Busch distributor
headquartered in Clarksville, TN. The Company distributes approximately 17
million annual case equivalents, has approximately 450 employees and six
facilities across Tennessee and Kentucky. The Company was founded as an
Oertels ’92 distributor, and in 1956 was awarded the distribution rights for
Anheuser-Busch products in an eight county area surrounding Clarksville. Since
that time, the Company has grown to include Cookeville, TN, Hopkinsville, KY,
Owensboro, KY, Chattanooga, TN, and Memphis, TN.

About BDT Capital Partners

BDT Capital Partners provides family-owned and entrepreneurially led companies
with long-term capital. Based in Chicago, the firm has a $3 billion investment
fund as well as an investor base with the ability to co-invest significant
additional capital. Its affiliate, BDT & Company, works with family businesses
to pursue their long-term strategic and financial objectives. BDT & Company
provides solutions-based advice and access to an extensive network of
world-class family businesses.

About Anheuser-Busch

For more than 160 years, Anheuser-Busch and its world-class brewmasters have
carried on a legacy of brewing America’s most-popular beers. Starting with the
finest, all-natural ingredients sourced from Anheuser-Busch’s family of
growers, every batch is hand-crafted using the same exacting standards and
time-honored traditions passed down through generations of proud
Anheuser-Busch brewmasters and employees. Best known for its fine
American-style lagers, Budweiser and Bud Light, the company’s beers lead
numerous beer segments and combined hold 47.6 percent share of the U.S. beer
market. Anheuser-Busch is the U.S. arm of Anheuser-Busch InBev and operates 12
local breweries, 17 distributorships and 23 agricultural and packaging
facilities across the United States, representing a capital investment of more
than $15.5 billion. Its flagship brewery remains in St. Louis, Mo., and is
among the global company’s largest and most technologically capable breweries.
Visitor and special beermaster tours are available at its St. Louis and four
other Anheuser-Busch breweries. For more information, visit
www.anheuser-busch.com.

Contact:

BDT Capital Partners
Jennifer Dunne, 312-660-7314
or
Hand Family Cos.
J.R. Hand, 931-552-3300
or
Anheuser-Busch
Adam Warrington, 314-765-3130
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