C&C Group in Talks to Buy Matthew Clark Bibendum From Conviviality

   By Carlo Martuscelli 
 

C&C Group PLC (GCC.DB) said Wednesday that it is in advanced discussions to acquire Matthew Clark Bibendum from Conviviality PLC (CVR.LN), with financial support from Anheuser-Busch InBev SA (ABI.BT).

The terms of the deal were not disclosed, but further details will be made public later on Wednesday, C&C said. The deal is conditional on Conviviality appointing administrators which is also expected to occur later on Wednesday, it said.

The acquisition would enhance 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 would be operated as a separate business.

Under the terms of the deal, Matthew Clark Bibendum would have 102 million pounds ($143.4 million) of working capital facilities provided by its current lender group, repayable over the course of a year in installments after the deal is completed, C&C said.

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.

Write to Carlo Martuscelli at [e-mail]

(END) Dow Jones Newswires

April 04, 2018 04:31 ET (08:31 GMT)

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