Bargain Booze owner Conviviality Retail is to acquire Wine Rack in a £1.65m deal that will boost the off-licence chain’s presence in the south of England.
Conviviality Retail is to acquire the 22 Wine Rack stores, predominantly in Greater London, as part of its strategy to push further into the south and build up its wine offering.
“This acquisition accelerates our expansion into the wine market, provides the company with additional expertise that will benefit our franchisees and increases our footprint in the south of England, including adding scale in the important London market,” said Conviviality Retail CEO Diana Hunter.
The company, which is set to benefit from increased buying power, will retain Wine Rack regional operations manager Ron Booker, as well as existing Wine Rack teams.
“We are looking forward to welcoming the current store teams and Ron Booker to Conviviality and we look forward to taking the Wine Rack brand from strength to strength with their involvement.
“The combination of greater buying power for Wine Rack and increased wine market expertise for Conviviality make this acquisition a positive move for all concerned,” added Hunter.
Conviviality expects to offer the opportunity to franchise the Wine Rack brand in the future.
The company floated on AIM in July (above).