Conviviality Retail in £200m wholesaler buyout
Conviviality Retail confirmed it is buying wholesaler Matthew Clark from Punch Taverns and Hertford Cellars for £200m.
The company's share price leapt after the announcement about the reverse takeover being struck via Conviviality's subsidiary Conviviality Brands, with Zeus Capital and Investec Bank acting on their behalf.
Soaring share price
The deal, which is the latest in a series of takeovers in the UK leisure and hospitality industries, is still subject to shareholder approval.
However, once approved it will mean the creation of a new major player in the industry that has a combined turnover of more than £1.1bn annually. On its first day back on trading on the markets, Conviviality's share price also increased by 24%.
Punch Taverns and Hertford Cellars are each off loading their 50% stake in the Matthew Clark business, valued at £100m each.
Chief executive of Punch Taverns, Duncan Garrood, commented: "We are pleased to have agreed the disposal of our investment in Matthew Clark and at a significant premium to our current book value. The sale of a non-core business will enhance our financial flexibility to pursue our strategic objectives for our core activities. At the same time, we will enter into a 10 year drinks supply agreement with Matthew Clark for the supply of wines and spirits into the Punch estate."
Diana Hunter, Conviviality's chief executive said: “We are pleased to have reached agreement on the acquisition of Matthew Clark as this will accelerate our strategy of expanding our wholesaling expertise into new markets and channels."
"Matthew Clark has a leading position in the independent on-trade market, complementing Conviviality's position in the off-trade, and the team bring significant on-trade wholesaling expertise and an unrivalled portfolio of high quality and loyal customers," she added.