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C&C buys Matthew Clark and Bibendum from Conviviality Brands

DBR Staff Writer Published 05 April 2018

C&C Group has completed the acquisition of Matthew Clark (Holdings) and Bibendum PLB (Topco) and their other subsidiaries from Conviviality Brands.

The deal includes subsidiary businesses Catalyst, Peppermint, Elastic and Walker & Wodehouse (together Matthew Clark Bibendum). 

C&C now holds 100% of the issued share capital of Matthew Clark Bibendum.

The acquisition is supported financially by AB InBev. C&C said its investment will be funded from its existing facilities.

Matthew Clark is an independent distributor across the UK’s on-trade drinks sector. It offers a range of 4000 products including beers, wines, spirits, cider and soft drinks, sourced from more than 300 suppliers.

On the other hand, Bibendum is a wine, spirits and craft beer distributor and wholesaler to the UK on-trade and off-trade, with focus on wine. It offers more than 4,000 wines, spirits and craft beers sourced from more than 400 suppliers, belonging to 20 different countries.

Matthew Clark Bibendum will run as a separate business. It will have £102m of working capital facilities provided by its current lender group, which will be repayable in instalments over a 12 months period.

The combination of C&C and Matthew Clark Bibendum will create an independent route-to-market network across the British Isles, alongside C&C’s existing drinks wholesaling businesses in the UK and Ireland.

It can provide direct access to about 23,000 on-trade customers across the UK including hotels, restaurants, pubs, clubs, and bars. And, can improve access for C&C’s cider and cider and premium brands across the on and off-trade in the UK.

With Bibendum’s expertise in wine, C&C expects to have an enhanced access to premium trade sectors in London and the South East.

For the 52 weeks ended 30 April 2017, Matthew Clark Bibendum had gross revenues of £1.21bn and adjusted EBITDA of £51.3m.

C&C Group CEO Stephen Glancey said: “We know the Matthew Clark and Bibendum businesses very well. They are great businesses with unparalleled on-trade market access, a wide range of supplier relationships and supported by a knowledgeable and loyal employee base.

“The last few weeks have been challenging for employees, customers and suppliers alike. We hope today’s announcement can put an end to this period of disruption and uncertainty. We look-forward to working with our new colleagues and other stakeholders to bring stability and restore the group’s position as one of the leading and most respected drinks suppliers to the UK hospitality sector.”

Image: C&C Group expects to expand its distribution across UK with the acquisition. Photo: Courtesy of Conviviality Group Limited.