Conviviality toasts Clark deal completion
CONVIVIALITY Retail, which owns the Bargain Booze and Wine Rack retail chains, has completed its transformational £200m deal for Matthew Clark, the drinks distributor.
The purchase of Clark by the Crewe-based business, by means of a reverse takeover, has created a group with revenues of more than £1.1bn.
On re-admission to the AIM market, the enlarged share capital of Conviviality had a market capitalisation of £285m, representing a 22% hike in its share price.
The deal was led by investment banking boutique Zeus Capital, which acted as financial adviser, nominated adviser and joint bookrunner. The transaction included a £130m equity fundraise and a debt raise of £170m.
Diana Hunter, chief executive of Conviviality, said: “Undertaking a reverse takeover, in a competitive process and with tight deadlines is a challenge that the team at Zeus expertly handled, working collaboratively with our other buy side advisors, the vendors, and providing management with excellent support at all times.”
The Zeus team, from the firm’s Manchester office, was led by head of private equity and private company, Tremayne Ducker, with support from directors of corporate finance Nick Cowles and Andrew Jones and assistant directors Jamie Peel and Richard Darlington.
Tremayne Ducker said: “We are very pleased to have supported Diana and Conviviality on the transformational acquisition of Matthew Clark. The acquisition is a crucial next step for Conviviality, and is the latest part of a journey that since 2013 has seen Zeus advise Conviviality on its AIM listing, and subsequently on a number of bolt on acquisitions.”
A team led by DLA Piper’s Manchester head of corporate James Kerrigan assisted by Ciaran Stone and Chris Wilson also advised Conviviality on the deal.
