NEW YORK, Aug 23 (Reuters) - Investment firm Meritage

Group is exploring the potential sale of Columbia Distributing

that could value the U.S. beverage distributor at about $2

billion, including debt, according to people familiar with the

matter.

Meritage, which was launched by billionaire Nat Simons after

he left hedge fund Renaissance Technologies in 1997, is working

with investment bankers at Morgan Stanley ( MS ) on a sale

process for Columbia, which is one of the largest U.S. beverage

distributors, the sources said, requesting anonymity as the

discussions are confidential.

Potential buyers of Columbia include family offices, private

equity firms, and rival beverage distributors, many of which are

family-owned, the sources said, cautioning that a deal is not

guaranteed.

Portland, Oregon-based Columbia generates more than $200

million of annual earnings before interest, taxes, depreciation,

and amortization, the sources said.

Columbia, Meritage and Morgan Stanley ( MS ) declined to comment.

Founded in 1935 by Chris Maletis Sr., Columbia is a supplier

of both alcoholic and non-alcoholic beverages to retailers and

restaurant chains in Oregon, Washington and California.

In 1993, Maletis' grandson Ed Maletis bought the rights to

distribute the Miller Brewing brand for the Portland market,

thus expanding the company's coverage of the Pacific Northwest.

Columbia currently distributes more than 300 brands including

Red Bull, Heineken, Corona and Smirnoff, according to its

website.

In 2008, Columbia further expanded its footprint through a

three-way merger with rivals Mt. Hood Beverage and Gold River

Distributing.

Meritage, which manages about $12 billion of assets as of

January this year, invests in areas including public and private

equity, credit and real estate. It has offices in New York City,

San Francisco, and Greenwich, Connecticut.

Meritage acquired Columbia in 2012 for an undisclosed sum.

The investment firm is also in talks to sell tire retail chain

Les Schwab Tire, Reuters reported earlier in August.