Beer Marketer's Insights - Sheehan Family Cos Has "Agreement" to Sell Rest of Biz to Tim, John, Chris & Matt Sheehan; Could Still Take A While

After more than 3 yrs of legal battles between family members, this Sheehan Family Cos saga appears to be coming to an end. Jerry Sheehan and his children agreed on a deal for brothers Tim, John, Chris and Matt to acquire remaining stake in Sheehan Family Cos (SFC) operations mostly from their sisters Margaret, Susan, Anne and Elizabeth, co confirmed with INSIGHTS after joint filing in MA state ct late last week. Recall, Sheehan brothers already owned significant stakes in each of the remaining operations. So deal is constructed as a stock transfer between the family members. Deal includes operations across MA, NY, WI and VA, INSIGHTS hears. That's all co's AB operations and 3 of its craft operations. But Craft of CT is likely to be sold off separately, we understand. And Beer House of KY not included in this current transaction, tho SFC still owns minority stake in that operation. "A number of conditions" still need to be met to complete the agreement, SFC shared in statement with INSIGHTS. But upon completion, Jerry Sheehan will retire. Jerry and other Sheehan family members "who do not wish to continue in the business" will sell their ownership stakes. And majority of employees should expect no changes.Disputing family members "executed an Equity Interest Purchase Agreement (the EIPA) that provides for a complete settlement of this litigation upon the closing of the sale contemplated by the EIPA," they confirmed in court filing. This "definitive documentation of a highly complex set of business transactions" runs 115 pages with 13 schedules and 5 exhibits, they wrote. It's been many mos in the making, as "negotiations involved multiple parties" working thru "numerous financial, operational and business issues" dealing with "several companies in three different states." (Editor's note: while court document lists just 3 states, deal includes operations in 4 states including MA, NY, WI and VA - see above.) If deal closes as set forth in EIPA, it'll resolve all disputes and various family members agree to drop all claims and counterclaims, they told ct.Sheehan Empire Shrunk, But Still Among Top Craft Beer and AB Distribs in US The Sheehan empire shrunk during this saga as co sold off various craft/import assets in NJ, MD/DC, VT, NH, ME, and RI, totaling about 3.5 mil cases annually, plus St Killian's importer. Just before the lawsuit, Sheehan sold 1 mil case operation in SoCal to Classic (see Vol 11, No 104). AB and craft beer declines in recent years also put a dent in co's volume. And while craft operations were sold for lower multiples, Sheehan Family got far bigger payouts for several prominent craft brands that transitioned distribution rights over the years, including Ballast Point, Bell's, and Dogfish Head. Even still, Sheehan Family Cos remains one of the biggest craft beer distribs in the country, and a sizable AB distrib across parts of MA, NY and WI.Deal Could Take 180+ Days Deal could take a while to complete, tho co expects it to close in Q2. "Several administrative steps" remain before that can happen, especially since bizzes in question operate in highly regulated alc bev biz, the ct filing explains. The family members asked the ct to pause all proceedings in the case until 1 of 3 things happens: 1) the deal closes, settling the suit; 2) the deal falls apart, pushing the suit forward; or 3) 180 days passes without either happening, at which point the family could ask for more time.The Sheehans first asked the judge to pause the case so they could hammer out a deal late last May. After extending it twice, the "stay of proceedings" ended on Nov 30. The family has continued to be "devoted" to finalizing an agreement the whole time, they told the ct. But there's been "no action" in the suit, formally, a state judge wrote in response. They had been preparing for a hearing this wk, expecting to hear arguments on various motions for summary judgment. But given last wk's filing, the judge converted that hearing to a scheduling conference, expecting to get more info on a potential settlement and its timeline.

Sheehan Family Cos Has "Agreement" to Sell Rest of Biz to Tim, John, Chris & Matt Sheehan; Could Still Take A While

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