Conviviality Plc has announced its subsidiary Conviviality Brands Ltd has conditionally agreed to acquire drinks supplier Bibendum PLB for an ‘enterprise value’ of £60m.
The deal will allow expansion in different channels and markets for Conviviality, which is already the UK’s largest independent drinks distributor to the on-trade.
Bibendum's five trading companies will continue to operate as normal, including Bibendum, which supplies wine to the on-trade, and Instil Drinks Co which specialises in spirits, beer and cider.
Bibendum, which supplies wine, beer and spirits to some 4,000 restaurants, pubs and hotels across the UK, will boost the listed group’s annual turnover by 23%, with combined annual sales of more than £1.2bn.
Bibendum was founded in 1982, and merged with PLB in 2014 to form the Bibendum PLB Group. It owns five individual businesses: Bibendum Wine, PLB, Instil Drinks Co., Walker & Wodehouse and The Wondering Wine Company.
Conviviality owns off-licence brands including Bargain Booze and Wine Rack, and first ventured into supplying bars and restaurants last year after its purchase of drinks wholesaler Matthew Clark for £200m.