C&C Group Buys Matthew Clark Bibendum From Conviviality -- Second Update
April 04 2018 - 1:21PM
Dow Jones News
(Updates with Conviviality statement on completion of sale,
details of deal)
By Carlo Martuscelli
Drinks wholesaler Conviviality PLC (CVR.LN) said on Wednesday
that it has safeguarded 1,900 jobs with the sale of Matthew Clark
Bibendum to C&C Group PLC (GCC.DB), and will now pursue
opportunities in respect to its retail unit.
Conviviality said it sold Matthew Clark Bibendum's share capital
to C&C for a nominal sum. C&C has also committed to
repaying Conviviality's 102 million pounds ($143.4 million) debt to
its secured lenders over the next 12 months
C&C, the maker of Bulmer's Cider, said earlier on Wednesday
that it bought the unit with financial support from Anheuser-Busch
InBev SA (ABI.BT). 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
the debt repayment 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, Conviviality 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.
London-listed C&C shares closed up 11% at 249.76 pence,
while Conviviality shares are currently suspended.
Write to Carlo Martuscelli at carlo.martuscelli@dowjones.com and
Adam Clark at adam.clark@dowjones.com
(END) Dow Jones Newswires
April 04, 2018 13:06 ET (17:06 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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