LONDON (Alliance News) - Conviviality PLC and Punch Taverns PLC Wednesday confirmed that Punch's disposal of its 50% interest in Matthew Clark (Holdings) Ltd to Conviviality has completed, as the latter added that it has now changed its name to Conviviality PLC from Conviviality Retail PLC.
Drinks supplier Matthew Clark was a 50/50 joint venture between Punch Taverns and Hertford Cellars Ltd, a subsidiary of Accolade Wines Ltd.
Conviviality struck a deal to fully acquire Matthew Clark for GBP200 million, of which it paid GBP100.7 million to Punch with the remaining balance paid to Hertford Cellars.
The deal was approved by Punch shareholders at a general meeting last Thursday.
Conviviality is expecting the acquisition to be earnings enhancing within the first year of ownership, while Punch Taverns said last week it will make around GBP98.7 million in net cash proceeds after costs and expenses, which will improve the company's "financial flexibility to pursue its strategic objectives".
Under the deal, Punch Taverns will enter into a 10-year non-exclusive drinks supply contract with Matthew Clark Wholesale Ltd. Under this supply agreement, Matthew Clark Wholesale will supply selected wines and spirits drinks products to Punch Taverns at agreed pricing levels.
Matthew Clark is a wholesaler selling a wide range of alcoholic and non-alcholic beverages whilst Conviviality mainly trades under the 'Bargain Booze' retail store brand. Punch Taverns runs about 3,500 pubs across the UK and was formed in 1997.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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