Bibendum bought by Conviviality Retail
Wine wholesaler Bibendum has been bought by Conviviality Retail in a deal reported to be worth £60m.
The deal, reported by The Telegraph, involves a payment of £40m for Bibendum's equity, which gives the business an enterprise value of £60m, which will be accompanied by a £32m rights issue.
The acquisition of Bibendum, which supplies wine, beer and spirits to approximately 4,000 restaurants, pubs and hotels across the UK, will boost the listed group's annual turnover by 23%, with combined annual sales of more than £1.2bn.
Conviviality owns brands including Bargain Booze and Wine Rack, and stepped into supplying bars and restaurants last year when it bought drinks wholesaler Matthew Clark for £200m.
Diana Hunter, chief executive of Conviviality, told The Telegraph that the purchase would bring "significant expertise to Conviviality in the off-trade wholesale market".
"Bibendum PLB's wine speciality, particularly in old world and premium wines, complements our other businesses and helps us to accelerate our leading position in the independent on-trade market," she added. "By operating a delivered wholesale model we can serve a diverse range of customers and build our wine and spirit volumes further while simultaneously strengthening our retail channel."
Bibendum was founded in 1982, and merged with PLB in 2014 to form the Bibendum PLB Group. It owns five individual businesses: Bibendum Wine, PLB, Instil Drinks Co, Walker & Wodehouse and the Wondering Wine Company.
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