C&C Group Buys Matthew Clark Bibendum From Conviviality -- Update
April 04 2018 - 12:10PM
Dow Jones News
(Update with confirmation of the completion of the sale, AB
InBev financing details, Conviviality's statement, and the share
price of C&C.)
By Carlo Martuscelli
C&C Group PLC (GCC.DB) said Wednesday that it is has
completed the acquisition of Matthew Clark Bibendum from
Conviviality PLC (CVR.LN) without providing any further
information.
Earlier Wednesday, the maker of Bulmer's Cider said that it was
in advanced talks to buy the unit with financial support from
Anheuser-Busch InBev SA (ABI.BT), and that the deal would be
conditional upon Conviviality appointing administrators.
The terms of the deal were not disclosed and AB InBev was not
immediately available for comment, but a U.K. spokesperson for
C&C said that AB InBev's support was in the form of a loan
which was a "small percentage" of a larger 102 million-pound
($143.4 million) facility.
The acquisition aims at enhancing C&C's presence in the U.K.
market and strengthen its supply and distribution capabilities, the
alcoholic drinks manufacturer said, adding that Matthew Clark
Bibendum will operate as a separate business.
Matthew Clark Bibendum is an independent distributor to the U.K.
on-trade drinks sector and includes Matthew Clark (Holdings)
Limited, Bibendum PLB (Topco) Limited and subsidiary businesses
Catalyst, Peppermint, Elastic and Walker & Wodehouse.
On March 29, Matthew Clark Bibendum's parent company
Conviviality PLC (CVR.LN) announced its intention to appoint
administrators and to explore a potential sale of all or part of
the business after failing to raise emergency funds. Earlier this
year the company issued a profit warning and said it had to pay the
U.K. tax authority an unexpected GBP30 million.
Earlier Wednesday, Conviviality said it was in talks with
C&C over the possible sale of its direct business, as well as a
number of interested parties for its retail business.
C&C shares were last up 11% at 248.88 pence, while
Conviviality shares are currently suspended.
Write to Carlo Martuscelli at carlo.martuscelli@dowjones.com
(END) Dow Jones Newswires
April 04, 2018 11:55 ET (15:55 GMT)
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