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Conviviality Retail confirms £200m deal to buy Matthew Clark

Published:  08 September, 2015

Conviviality Retail has confirmed a deal to buy Matthew Clark from Accolade Wines and Punch Taverns for £200 million.

The Bargain Booze owner had revealed it was in talks to buy the specialist on-trade wholesaler in July and was named as the preferred bidder for the business last month.

The acquisition creates a business with combined turnover of £1.1 billion. Conviviality said it would offer "a compelling route to market for suppliers to access both on- and off-trade retailers".

It added that it expected to achieve synergies from buying, distribution, organisational efficiencies and additional revenue generation, and that it would be earnings enhancing from the first full year of ownership.

The deal is being funded by a placing of new shares worth £130 million and £80 million of new debt.

Conviviality chief executive Diana Hunter said: "This will accelerate our strategy of expanding our wholesaling expertise into new markets and channels.

"Matthew Clark has a leading position in the independent on-trade market, complementing Conviviality's position in the off-trade, and the team bring significant on-trade wholesaling expertise and an unrivalled portfolio of high quality and loyal customers.

"By operating a delivered wholesale model we can serve a diverse range of customers and build our wine and spirit volumes further while simultaneously strengthening our retail channel.

"The acquisition will create a major player in the UK drinks wholesale market and we believe that combining the two businesses will give rise to significant potential synergies."