C&C Group in ‘advanced discussions' to acquire Conviviality's wholesale businesses

Drinks manufacturer and distributor C&C Group PLC has announced it is in "advanced discussions" to acquire the Matthew Clark and Bibendum brands from troubled wholesaler Conviviality.

The groups and their subsidiaries, Catalyst, Peppermint, Elastic and Walker & Wodehouse, make 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: "C&C announces that with the support of AB InBev, it is in advanced discussions to acquire the entire issued share capital of Matthew Clark (Holdings) Limited and Bibendum PLB (Topco) Limited.

"The proposed acquisition is conditional upon, amongst other things, the appointment of administrators to Conviviality Brands Limited (the seller), which is expected to occur later today. A further announcement will be made later this morning.

"Consideration for the shares will be a nominal sum, and C&C will provide sufficient funds to support the on-going working capital and other cash requirements of the business. In addition, AB InBev will provide additional financial support to the transaction. C&C's investment will be funded from existing C&C facilities."

C&C Group PLC already manufacture and distribute brands including Bulmers, Magners and Tennent's Lager.

Conviviality has 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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