Conviviality Retail is a step closer to buying drinks bottler and wholesaler Matthew Clark, after signing an exclusivity deal as the favoured bidder for the business.
A little over a month ago Conviviality, which owns Wine Rack and Bargain Booze, confirmed that it was in discussions about potentially acquiring Matthew Clark. Now the franchise drinks retail group essentially has until September 4 to put funding in place to wrap up a deal that is understood to be worth around £200m.
This means that other interested bidders have been taken out of the running.
Under the terms of the exclusivity agreement, the wholesaler‘s owners – Accolade Wines‘ subsidiary Hertford Cellars and pub group Punch Taverns – have agreed not to complete a disposal of the company to any third party before September 4.
They have also promised to pay Conviviality a break fee of £1m if they ensure the company is sold to a third party within 180 days of withdrawing from the agreed sale.
The 4 September date may be extended, subject to prior agreement.