DB managers buy liquor businesses

By DITA DE BONI

Four senior managers from DB Group's liquor division have bought the Group's liquor retail stores and three on-premises wholesaling businesses.

The company will not release the price of the sale until an appraisal report on Asia Pacific Breweries' takeover bid for the group is released to the Stock Exchange on February 22.

The settlement date for the liquor deal is March 31.

The management buy-out, headed by current chief executive of DB's liquor division Tom Maguigan, involves three warehouse operations in Auckland, Wellington and Christchurch, and 32 Liquorland retail stores.

Twenty-two marketing, information systems, regional and head office staff will become DB Group employees as part of what the company's describes as its "ongoing involvement and commitment" to the Liquorland franchise.

The remaining 150 New Zealand Liquor staff will become employees of the four new owners of the businesses.

The move is consistent with DB Group's stated aim of divesting itself of the direct management of its liquor retail stores, and means all the company's 108 Liquorland stores will now be franchise operations.

The general manager of corporate affairs for DB Group, Nicola Roberts, said the company was approached by the senior managers around two months ago with an offer.

"We continue to be totally committed to the franchise business but have said [several] times we would be moving away from direct management of the retail stores," she said.

DB shook up its liquor business in October last year when the company announced it would wind up Allied Liquor Merchants this March.

Earnings before tax (EBIT) for the group's liquor division last year with the Diageo business still included was $13 million, with assets of $109.7 million and revenues of $335.4 million.