C&C Group in Talks to Buy Matthew Clark Bibendum From Conviviality
April 04 2018 - 4:46AM
Dow Jones News
By Carlo Martuscelli
C&C Group PLC (GCC.DB) said Wednesday that it is in advanced
discussions to acquire Matthew Clark Bibendum from Conviviality PLC
(CVR.LN), with financial support from Anheuser-Busch InBev SA
(ABI.BT).
The terms of the deal were not disclosed, but further details
will be made public later on Wednesday, C&C said. The deal is
conditional on Conviviality appointing administrators which is also
expected to occur later on Wednesday, it said.
The acquisition would enhance 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 would be operated as a separate business.
Under the terms of the deal, Matthew Clark Bibendum would have
102 million pounds ($143.4 million) of working capital facilities
provided by its current lender group, repayable over the course of
a year in installments after the deal is completed, C&C
said.
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.
Write to Carlo Martuscelli at carlo.martuscelli@dowjones.com
(END) Dow Jones Newswires
April 04, 2018 04:31 ET (08:31 GMT)
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