Beverage alcohol distributor Southern Glazer’s agreed to acquire Anheuser-Busch’s New York City distribution arm.

Terms of the transaction were not disclosed.

The move will establish Southern Glazer’s Beverage Company of New York, covering Manhattan, Queens, Staten Island and the Bronx. It includes Anheuser-Busch’s full product portfolio currently distributed in the area, ranging from beer brands to spirits-based ready-to-drink products and the recently launched Phorm Energy drink line. The deal is expected to close later this year.

Following the close of the transaction, Southern Glazer’s said it plans to retain all current Anheuser-Busch employees based at the Bronx facility and will continue operating from that location. Anheuser-Busch and Southern Glazer’s are working to ensure a smooth employee transition and uninterrupted distribution of products.

In conjunction with the acquisition, Southern Glazer’s is launching a New York beverage division to support growing demand for Anheuser-Busch products.

The new division will be led by Devyn Dugger, who has been appointed Senior Vice President. Dugger has two decades of experience within the Anheuser-Busch independent wholesaler network, with past roles at Tri-Eagle Sales in Tallahassee, Gold Coast Eagle Distributing in Sarasota and most recently, as President and Equity Agreement Manager at Ohio Eagle Distributing in West Chester, OH.

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“We could not be more excited to expand our business with Anheuser-Busch, the leading brewer and malt beverage supplier in the industry and an emerging leader in spirits and energy drinks, by acquiring their owned New York City distribution operation,” Southern Glazer’s President & CEO Wayne Chaplin said in an Aug. 20 news release. “We look forward to welcoming all current employees at this location to the Southern Glazer’s team and working together to grow these iconic brands.”