Magners owner C&C Group (CCR) has completed a deal to assume full ownership of the Matthew Clark and Bibendum wholesale businesses belonging to beleaguered Conviviality (CVR).

C&C Group announced this morning it was in “advanced talks” to buy the businesses following the dramatic collapse of Bargain Booze owner Conviviality.

The acquisition is for “a nominal sum”, with C&C pledging to provide sufficient funds to support the ongoing working capital and other cash requirements of the business.

Brewing giant AB InBev will provide extra financial support for the deal.

Matthew Clark Bibendum will be run as a separate business. C&C believes it will ”offer significant revenue opportunities” and ”provide significant earnings accretion and attractive returns on capital in the first full financial year following completion”.

In the latest audited accounts for the 52 weeks ended 30 April 2017, Matthew Clark Bibendum had gross revenues of £1,219m and adjusted EBITDA of £51.3m (pre central costs).

However, in its trading update of 21 March, Conviviality said it expected that the adjusted EBITDA for the entire group for the year ending 29 April to be £45.5m-£46m. Gross assets of approximately £230m are expected to be acquired at completion.

C&C’s chief executive Stephen Glancey said: “We know the Matthew Clark and Bibendum businesses very well. They are great businesses with unparalleled on-trade market access, a wide range of supplier relationships and supported by a knowledgeable and loyal employee base.”

“We hope today’s announcement can put an end to this period of disruption and uncertainty. We look-forward to working with our new colleagues and other stakeholders to bring stability and restore the group’s position as one of the leading and most respected drinks suppliers to the UK hospitality sector.”

C&C Group shares are up 11.6% to €2.87 on today’s news.

Conviviality struck a £200m deal to buy Matthew Clark, the UK’s biggest independent drinks distributor, in September 2015.

It later snapped up wine supplier Bibendum PLB in a deal worth £60m in May 2016.

Conviviality also announced this morning it is also in discussions with a “number of other parties” interested in the purchase of its retail business - primarily franchisees trading under the Bargain Booze, Select Convenience and Wine Rack facias.

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