Crewe-based alcohol wholesaler Conviviality to acquire Bibendum for £60m

A subsidiary of Cheshire-based alcohol wholesaler Conviviality Plc is set to acquire Bibendum PLB (Topco) Limited in a deal worth £60m.

Conviviality Brands Limited has conditionally agreed to purchase the drinks distributor and intends to partially fund the transaction by raising around £32m through the placing of more than 15.6m new shares.

Additionally, Conviviality will take out a loan of £10m with its existing lenders. The Crewe-headquartered firm has also agreed to extend Bibendum’s invoice discounting facilities of up to £30m, of which £20m was anticipated to be drawn down as of April 29.

Once complete, the acquisition is expected to be earnings enhancing in the current financial year, increasing Conviviality’s turnover by around 23% and delivering combined annual sales of more than £1.4bn.

Conviviality’s CEO, Diana Hunter, said of the deal: “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.

“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 continued: “The team brings significant wine wholesaling expertise and an enviable portfolio of high quality and loyal customers, particularly in London and the South East.

“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.”

Professional services firm Deloitte’s North West team, led by Jodi Birkett, Tom Addison and David O’Leary, provided Conviviality with buy side due diligence during the transaction.

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