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Conviviality wins exclusivity agreement in bid to wrap up Matthew Clark deal by September 4

Published:  14 August, 2015

Conviviality Retail has edged closer to a deal to buy Matthew Clark after signing an exclusivity deal as the preferred bidder for the business.

The franchise drinks retail group effectively has until September 4 to put funding in place to wrap up what is thought to be a deal in the region of £200 million.

The agreement takes other interested parties out of the frame in what is understood, until now, to have been a competitive bidding process.

Under the terms of the exclusivity agreement, the wholesaler's owners - Accolade Wines' subsidiary Hertford Cellars and pub group Punch Taverns - have agreed not to complete a disposal of the company to any third party before September 4.

They have also agreed to pay Conviviality a break fee of £1 million if they agree to sell the company to a third party within 180 days of withdrawing from an agreed deal to sell to Conviviality.

Conviviality - whose retail brands include Wine Rack and Bargain Booze - will pay the same amount if agreements to affect its own acquisition of Matthew Clark are not signed by the September 4 deadline.

Conviviality confirmed on July 9 that it was in talks about a possible takeover of the on-trade specialist wholesaler.