A Wholesale Opportunity
Since the end of prohibition the State of Maine has held a monopoly on the
distribution of spirits - a business that nets the State over $25 million in
profits each year. Lindsay, Goldberg & Bessemer (LGB), a New York-based
private equity firm, approached Preti Flaherty with the goal of acquiring this
lucrative enterprise.
Laying the Groundwork
Faced wtih a strained budget, the State of Maine was receptive to the idea of
selling a ten-year license to operate the wholesale liquor business, for an
upfront payment of $125 million. Attorneys in Preti Flaherty's Legislative,
Regulatory and Governmental Services Group worked with state leaders to enact
landmark legislation authorizing the State to accept bids on the business. LGB
made their offer, but unfortunately didn't win the contract.
A Spirited Solution
Preti Flaherty's litigators stepped in to help LGB reach its goal. They
appealed the award on LBG's behalf, ultimately negotiating a settlement whereby
LGB assumed a controlling interest in the winning bidder. The baton was then
passed to Preti Flaherty's Business Law attorneys, who worked with state
officials to finalize the details of this historic public-private partnership.
The resulting agreement is a boon not only for the State, but for the nearly 300
small businesses in Maine that depend on the wholesale liquor trade and now have
increased opportunities for sales and profitability.
