Bargain Booze owner Conviviality Retail has inked a £1.7m deal to acquire Wine Rack owner LCL Enterprises as it expands in the south.
Conviviality, which listed on AIM in July, has brought the retailer’s 22 stores, which are predominantly in London, into its portfolio.
Wine Rack was acquired by its management in November 2009 who expanded the business from 13 outlets to its current portfolio of 22 stores and developed an ecommerce platform.
Ron Booker will remain the Wine Rack regional operations manager and Conviviality expects to franchise the format in the future.
Wine Rack recorded sales of £11.3m in the year to March 31 as profits rose to £180,000.
Conviviality said that the purchase of Wine Rack will enable the company to enhance its presence in the south of England, as well as broadening its wine offering in many of its existing stores and gaining a fascia with a strong brand and customer following.
Conviviality Retail chief executive Diana Hunter said: “Wine Rack fits perfectly with our stated strategy, outlined when we floated on AIM.
“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.”
She added: “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.”