Bargain Booze owner Conviviality is back on the acquisition trail after striking a deal to acquire drinks wholesaler Bibendum for £60m.
Conviviality, which also owns Wine Rack, said the deal will push its group annual sales to around £1.4bn and boost its position in the premium drinks market.
Bibendum, founded in 1982, supplies wines, spirits and craft beers to around 4,000 restaurants, hotels, pubs and caterers.
Diana Hunter, Conviviality’s chief executive, said: “Bibendum’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.”
She added: “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.”
Conviviality, which is listed on the Aim stock market, will fund through the deal by conditionally placing 15.6m new shares, which will raise £32m. It will also raise £10m through a loan from its existing lender.
Last year the group made its first move into supplying bars and restaurants with the acquisition of drinks wholesaler Matthew Clark for £200m.