Not surprisingly, AB and NJ craft distrib Hunterdon (A Sheehan Family co) settled case over AB moving Elysian brands to its distrib network in early 2015. Key issue: whether Hunterdon got fair mkt value for brands, required by NJ law. Recall, AB sent check to Hunterdon for $563K, 5.5X GP of estimated $12/case for approx 8,528 cases of Elysian it sold in 2014. AB sought court ruling that Hunterdon got FMV. Hunterdon reportedly sought 12X GP and countersued, challenging AB termination. Fed judge tossed most of Hunterdon’s counterclaims earlier this yr and case went to mediation, scheduled to start Apr 13. Two weeks later, parties informed judge they’d settled. No details yet, natch. Not likely AB wanted higher GP level “established” in NJ; it transitioned Blue Point there for 4.75X GP in 2014, added a “15% premium,” it said, for Elysian. And not likely Hunterdon wanted to establish lower multiple. Plus AB and Sheehan Family Cos have other potential deals to discuss on brands AB acquired that Sheehan sells outside AB footprint.
AB-Hunterdon Case Settled; All About A Number, and That’s Not Public
Publishing Info
- Newsletter: INSIGHTS Express
- Published: 05/10/2016
- Volume: 18
- Issue #: 87