C&C Group Buys Matthew Clark Bibendum From Conviviality -- Update

(Update with confirmation of the completion of the sale, AB InBev financing details, Conviviality's statement, and the share price of C&C.)

By Carlo Martuscelli

C&C Group PLC (GCC.DB) said Wednesday that it is has completed the acquisition of Matthew Clark Bibendum from Conviviality PLC (CVR.LN) without providing any further information.

Earlier Wednesday, the maker of Bulmer's Cider said that it was in advanced talks to buy the unit with financial support from Anheuser-Busch InBev SA (ABI.BT), and that the deal would be conditional upon Conviviality appointing administrators.

The terms of the deal were not disclosed and 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 a larger 102 million-pound ($143.4 million) 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, 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.

Earlier Wednesday, Conviviality said it was in talks with C&C over the possible sale of its direct business, as well as a number of interested parties for its retail business.

C&C shares were last up 11% at 248.88 pence, while Conviviality shares are currently suspended.

Write to Carlo Martuscelli at [e-mail]

(END) Dow Jones Newswires

April 04, 2018 11:55 ET (15:55 GMT)

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