Bargain Booze owner Conviviality Retail has underground a rebrand as it drops ‘retail’ from its name and website as the acquisition of drinks supplier Matthew Clark completes and open up to the on-trade market, which includes pubs, restaurants and hotels. Matthew Clark is a significant wholesaler in the drinks industry and together with Conviviality, their business should uniquely target both on-trade and off-trade retailers. “The combination of the two companies is a great strategic fit and a transformational acquisition for conviviality”, said Conviviality Chief Executive Diana Hunt.
Conviviality Retail was smaller than Matthew Clark in terms of sales (the year ending April 26, Conviviality reported revenues of £364.1m whilst in February Matthew Clark reported £811.2m), they have undertaken a ‘reverse takeover’ of Matthew Clark and are using a share placing and new debt facility to finance the £200m acquisition.
The huge buying power this acquisition will generate will allow the company to become a series threat to major grocers.