C&C Group confirms purchase of Conviviality's wholesale businesses

Drinks manufacturer and distributor C&C Group has confirmed its acquisition of the Matthew Clark and Bibendum brands from troubled wholesaler Conviviality.

The groups and their subsidiaries, Catalyst, Peppermint, Elastic and Walker & Wodehouse, made up the wholesale arm of Conviviality, which also owns Bargain Booze retail outlets.

Conviviality declared its intention to call in administrators last week having failed to raise £125m to save the business.

In an update posted to the London Stock Exchange today C&C said: "Further to the announcement this morning that C&C was in advanced discussions to acquire Matthew Clark (Holdings) Limited and Bibendum PLB (Topco) Limited ("Matthew Clark Bibendum"), C&C confirms that the acquisition has now completed in accordance with the terms set out in this morning's announcement.

"Accordingly, C&C now owns 100% of the issued share capital of Matthew Clark Bibendum."

Earlier today the group has said it would provide sufficient funds to support the on-going working capital and other cash requirements of the business with AB InBev providing additional financial support.

Conviviality has said all trade creditors will be paid in full and continuity of supply has been assured for customers as has employment for 1,900 staff.

It has also said it is also in discussions with possible buyers for the retail arm of its business.

Conviviality announced it would call in administrators following two profit warnings in March and the discovery of an unexpected £30m tax bill, that saw company shares on AIM suspended.

Conviviality became the UK's largest alcoholic drinks wholesaler following the purchase of Matthew Clark in 2015 and Bibendum in 2016.

Chief executive, Diana Hunter stepped down with immediate effect last month.

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