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

(Updates with Conviviality statement on completion of sale, details of deal)

By Carlo Martuscelli

Drinks wholesaler Conviviality PLC (CVR.LN) said on Wednesday that it has safeguarded 1,900 jobs with the sale of Matthew Clark Bibendum to C&C Group PLC (GCC.DB), and will now pursue opportunities in respect to its retail unit.

Conviviality said it sold Matthew Clark Bibendum's share capital to C&C for a nominal sum. C&C has also committed to repaying Conviviality's 102 million pounds ($143.4 million) debt to its secured lenders over the next 12 months

C&C, the maker of Bulmer's Cider, said earlier on Wednesday that it bought the unit with financial support from Anheuser-Busch InBev SA (ABI.BT). 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 the debt repayment 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, Conviviality 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.

London-listed C&C shares closed up 11% at 249.76 pence, while Conviviality shares are currently suspended.

Write to Carlo Martuscelli at [e-mail] and Adam Clark at [e-mail]

(END) Dow Jones Newswires

April 04, 2018 13:06 ET (17:06 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.