Bargain Booze owner Conviviality Retail has agreed to acquire drinks supplier Matthew Clark for an enterprise value of £200m.
The acquisition constitutes a reverse takeover, as Conviviality Retail is the smaller of the two companies, and so is conditional on obtaining shareholder approval on 24th September.
The acquisition is expected to enhance earnings from the first full year of ownership and create a major UK drinks wholesaler with combined annual sales of over £1.1bn.
In the year to 28th February 2015 Matthew Clark, which is the biggest supplier to UK pubs, generated a £2.53m profit on sales of £811.2m.
Conviviality’s directors believe that “potential exists for significant synergies to be realised from the combination of the two businesses”, with potential synergies from buying, distribution, organisational efficiencies and additional revenue generation.
Conviviality Chief Executive Officer, Diana Hunter, said: “We are pleased to have reached agreement on the acquisition of Ma