Drinks group C&C has struck a deal to acquire Matthew Clark Bibendum and its associated businesses – the largest independent distributor to the UK on-trade drinks sector.
This morning C&C said it was in "advanced discussions" to acquire the business, with the deal conditional upon the appointment of administrators to Matthew Clark Bibendum's parent company, Conviviality Brands Ltd.
The deal will see it pay a nominal sum for the business, with C&C providing "sufficient funds to support the on-going working capital and other cash requirements of the business."
The acquisition is being supported financially by brewer AB InBev.
Matthew Clark Bibendum will be run as a separate business to C&C and will have £102m of working capital facilities provided by its current lender group.
That will be repayable in installments over the next year.
Commenting on the deal, C&C Group CEO Stephen Glancey said: "We know the Matthew Clark and Bibendum businesses very well. They are great businesses with unparalleled on-trade market access, a wide range of supplier relationships and supported by a knowledgeable and loyal employee base.
"The last few weeks have been challenging for employees, customers and suppliers alike. We hope today’s announcement can put an end to this period of disruption and uncertainty. We look-forward to working with our new colleagues and other stakeholders to bring stability and restore the group’s position as one of the leading and most respected drinks suppliers to the UK hospitality sector."
Shares in C&C Group closed 8.7% higher in Dublin on the back of the announcement.
