Magners cider owner C&C, backed by brewing giant AB InBev, has snapped up the Matthew Clark and Bibendum distribution businesses from embattled Conviviality.

C&C paid a nominal sum for the businesses and pledged to “provide sufficient funds to support ongoing working capital and other cash requirements”.

AB InBev provided “additional financial support to the transaction”.

Conviviality, which owns the Bargain Booze and Wine Rack fascias, said that discussions are also taking place “with a number of other parties interested in the purchase of the retail business”. 

The Matthew Clark deal was conditional upon Conviviality Brands being put into administration. PWC has been appointed to manage the administration process. 

Ahead of the deal C&C said: “C&C is pleased to be able to lead this industry-wide solution and bring stability to the business after the recent period of uncertainty.”

Matthew Clark Bibendum will be run as a separate business.

The latest audited accounts, covering the 52 weeks to April 30 2017, showed that Matthew Clark and Bibendum generated gross revenues of £1.22m and adjusted EBITDA of £51.3 million.

C&C 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.

“The last few weeks have been challenging for employees, customers and suppliers alike. 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.”