Sussex-based Beer Capitol Distributing Co. will be sold to Middleton-based Frank Beverage Group in a deal that is set to close Oct. 1.
Aldo Madrigrano, Beer Capitol chairman, chief executive and owner, said Frank Beverage approached the company with an offer to purchase. He said the fact Frank Beverage wanted to retain the Beer Capitol name, keep the approximately 320 employees and move the business forward with a new generation of leadership made the deal attractive.
“Leaving it in good young hands taking it to the next step really excites me,” Madrigrano said, adding that Frank Beverage has another generation moving into leadership roles in Justin and Steve Frank, while none of the partners in Beer Capitol have children in the business.
Beer Capitol was started in 1933 and has included four generations of family ownership. The company has represented more than 250 different beers, 2,000 wines and spirits, 50 sodas and three waters.
Frank Beverage Group is also in its fourth generation of family ownership and was started as Frank Liquor Company in 1933. The company employs more than 400 people in 20 counties across the state.
Mike Frank, Frank Beer Distributors and La Crosse Beverage president, said Beer Capitol is “an exceptional organization” that is very similar to Frank Beverage in terms of brands represented.
“Opportunities lke that don’t come along that often,” he said.
Frank reiterated the intention is to keep all of the employees and maintain the Beer Capitol name. He said it would essentially operate as a standalone business and there would be virtually no impact on day-to-day operations.
Financial terms of the deal were not disclosed.
News of the sale was first reported by industry trade publication Beer Business Daily.