Subscriber login Close [x]
remember me
You are not logged in.

Conviviality to acquire Bibendum PLB for £60m

Published:  01 May, 2016

Conviviality Plc has announced its subsidiary Conviviality Brands Limited has conditionally agreed to acquire Bibendum PLB for an 'enterprise value' of £60 million.

The completion of the sale is set to be approved by shareholders at Conviviality's general meeting which is to be held on 19 May 2016 and admission of the resolution will take place on 20 May, 2016.

"We are pleased to be acquiring Bibendum PLB as the business will not only accelerate our strategy of expanding our wholesaling expertise into new markets and channels, but brings significant expertise to Conviviality in the off-trade wholesale market through the PLB business," said chief executive officer of Conviviality Diana Hunter.

The acquisition is expected to boost the Group's annual sale to over £1.4 billion.

According to statement put out by Conviviality today, the company has "secured irrevocable commitments to vote in favour of the Resolutions to be proposed at the general meeting" with 35.2% of ordinary shares that are currently held by shareholders, which have provided  statements of intent to approve the deal.

Bibendum PLB's unaudited revenue for the financial year ending on 31 March 2016 is expected to hit £270.5 million.

Conviviality's chief exectuive Diana Hunter

Hunter indicated that the acquisition was particularly attractive as it would help Conviviality increase its growth within the independent on-trade market. Hunter said: "Bibendum PLB's wine speciality, particularly in old world and premium wines complements our other businesses and helps us to accelerate our leading position in the independent on-trade market. The team brings significant wine wholesaling expertise and an enviable portfolio of high quality and loyal customers, particularly in London and the South East."

The acquisitions will also further help Conviviality to be the supplier of choice for every drinking occasion, from the home to the on-trade.

"The acquisition of Bibendum PLB accelerates our aim to satisfy all of our customers who want to consume alcoholic beverages at home or out of home, whatever the occasion, serving customers directly via retail outlets and indirectly through hospitality and foodservice channels. We believe the acquisition will give rise to significant potential synergies and increase returns for Conviviality's shareholders," said Hunter.

This is second major acqusition for Conviviality in less than year.  Conviviality bought Matthew Clark in September of 2015 for £200 million.

Keywords: