Conviviality to purchase Bibendum PLB for £60m
Conviviality Plc’s subsidiary Conviviality Brands Limited has agreed to acquire alcohol distributor and wholesaler Bibendum PLB for £60 million (US$88.5m).
Shareholders will be asked to approve the deal at Conviviality’s general meeting on 19 May, and admission of the resolution will take place on 20 May.
The acquisition follows the purchase of Matthew Clarke for £200m last year and is expected to bolster annual sales by 23% to more than £1.4bn (US$2.01bn).
Conviviality is hoping to raise £32m through issuing shares at 205p each, with an extra £10m being drawn from its banking facilities.
“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 Diana Hunter, CEO of Conviviality Plc.
“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.”