Anheuser-Busch has signed an agreement to sell its 30% stake in CITY Beverage-Illinois to Hand Family, a US-based family-owned beer distributor, for an undisclosed amount.

Based in the US, City Beverage is a retailer of craft beer, wine and home brewing supplies.

In another transaction, Hand Family has partnered with BDT Capital Partners to acquire 100% stake in River North Sales and Service for an undisclosed amount.

The transactions will allow Hand Family to become the largest distributor in Illinois and the Chicago metropolitan area selling approximately 23.5 million annual cases equivalents.

Under the deal, River North will be gradually combined with CITY Beverage.

Post acquisition, Hand Family CEO and president JR Hand will continue to head the combined entity and will oversee Hand’s distribution operations in Tennessee and Kentucky.

Anheuser-Busch sales vice president David Almeida said the Hand family has operated successful Anheuser-Busch distributorships in Tennessee and Kentucky for many years.

"Their operations have a demonstrated track record of sales and operational excellence. These are critical traits in the competitive Chicago market, and we believe their years of experience and desire to win will serve us well in this important market," Almeida added.

"With the sale of our stake, the CITY Beverage and River North operations will be combined, creating a strong, competitive and consolidated AB distributorship in the Chicago market."

Both the transactions are subject to supplier and regulatory approvals and are scheduled to close by the end of 2013.