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Conviviality Retail to ‘accelerate growth’ with £25M acquisition of over 100 Central Convenience Stores

Published:  15 December, 2017

Conviviality, the alcohol wholesaler, distributor and high street retailer, is to buy 109 convenience stores from failed Palmer & Harvey (P&H) through its subsidiary Bargain Booze.

As part of the agreed deal it also has the rights as franchisor of a further 18 franchisee-operated stores trading under the fascia ‘Central Convenience’ from P&H subsidiary WS Retail (WSR).

The deal has been agreed for a cash consideration of £25m, dependent on the acquisition being competed by 4.30pm toda (Friday 15 December). 

P&H entered administration on 28 November 2017 as hopes for buyout plans by private equity firm Carlyle fell through.

Conviviality said the acquisition would be funded through a share placing, underwritten by Investec.

Conviviality said that the stores provide enhanced scale and reach for the Conviviality Retail division strengthening the group’s presence in the south and south west of England.

It also said that the acquisition was expected to facilitate acceleration of the group's strategy to satisfy 
customers who wish to consume alcoholic beverages at home or out of home, serving customers directly via retail outlets and indirectly through hospitality and foodservice channels. 

"We are pleased to have finalised terms for a potential acquisition of Central Convenience as it provides a clear opportunity to accelerate the growth and reach of the existing Conviviality Retail business, notably broadening our geographic footprint in the south and south west of England,” said Diana Hunter, chief executive officer of Conviviality.

acquisition, if effected, will support our strategic goal to be the drinks and impulse sector’s leading independent distributor and we believe that potential exists for a range of synergies and increased returns for Conviviality's shareholders. We look forward to welcoming colleagues from Central Convenience to the Conviviality Group."