Bargain Booze owner in £60m acquisition

CREWE-based Conviviality, owner of Bargain Booze and Wine Rack, is to buy a drinks wholesaler for £60m.

Bibendum PLB is one of the largest wine, spirit and beer distributors and wholesalers to the UK on-trade and off-trade markets.

Conviviality said the acquisition will give it increased market share with the on-trade through Bibendum Wine; the off-trade through Walker & Wodehouse; agencies through PLB and Instil Drinks Co. and events through the Wondering Wine Company.

Bibendum PLB particularly strengthens the group in premium trade sectors and deepens its presence in London and the South East.

It generated revenues of £270.5m for the year to the end of March, with adjusted EBITDA of £6.66m and will increase the group’s turnover by 23%, with combined annual sales of £1.4bn.

Diana Hunter, chief executive of Conviviality, said: “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. 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.

“The acquisition of Bibendum PLB accelerates our aim to satisfy all of our customers who want to consume alcoholic beverages at home or out of home, whatever the occasion, serving customers directly via retail outlets and indirectly through hospitality and foodservice channels. We believe the acquisition will give rise to significant potential synergies and increase returns for Conviviality’s shareholders.”

Convivality plans to raise £32m through a share placing to help fund the acquisition.

Meanwhile, a further £10m term loan will be drawn down under the group’s revised bank facilities with its existing lenders.

Conviviality has also agreed the extension of Bibendum’s invoice discounting facilities of up to £30m of which £20m has been drawn down.

Danny Hall and Paul Keohane of Eversheds acted for Investec Bank and Zeus Capital as joint brokers to the fundraise. DLA Piper, led by James Kerrigan, advised Conviviality.

A team at Deloitte in the North West led by Jodi Birkett, Tom Addison and David O’Leary provided buy side due diligence for Conviviality.

Click here to sign up to receive our new South West business news...
Close