Conviviality Retail shares have rocketed as the Bargain Booze and Wine Rack owner announces a £200m takeover of Matthew Clark.
The UK’s biggest drinks wholesaler was put up for sale earlier this year by its shareholders Punch Taverns and Accolade Wines, owned by Australian private equity firm CHAMP.
The takeover allows Conviviality to expand beyond its retail heartland into the on-trade and provide alcohol to bars, hotels and pubs.
Punch Taverns is selling its stake for £100.7m and will receive a £1.5m dividend from Matthew Clark before closing the deal. Accolade Wines is also selling its 50pc stake to Conviviality. Both shareholders have entered into a 10-year non-exclusive supply contact.
In a statement from Matthew Clark, CEO Steve Thomson told Better Wholesaling the deal will enable the wholesaler to flourish as a business and allow them to become even stronger in the future.
“This deal is great news for us and something we have actively gone out to try and secure. Combining the experience, knowledge and reach of Matthew Clark in terms of the on-trade with Conviviality’s off-trade model creates a unique group with a significant market scale,” he added.
Conviviality shares were trading up 37.7p, or 24.4pc to 192.75p, while Punch Tavern shares were up 3.88p, or 3.18pc, to 125.8p.