TIDMCVR
RNS Number : 8645J
Conviviality PLC
04 April 2018
4 April 2018
Conviviality Plc
("Conviviality" or the "Company")
Proposed Sale of Business
Conviviality Plc (AIM: CVR), announces that it has sold its
Conviviality Direct businesses(1) to C&C Holdings NI Limited, a
wholly owned subsidiary of C&C Group Plc ("C&C"), which
ensures this business continues to trade as a going concern and
ensures that:
-- all trade creditors of the Conviviality Direct business will be paid in full;
-- continuity of supply is assured for suppliers and customers of Conviviality Direct; and
-- continuity of employment for the c. 1,900 Conviviality Direct employees.
The Company's subsidiary, Conviviality Brands Limited appointed
administrators earlier today and the administrators have affected
the sale of the entire share capital of Matthew Clark (Holdings)
Limited and Bibendum PLB (Topco) Limited (parent companies of all
of the Conviviality Direct trading companies(1) ). The sale has
been agreed further to receipt of many expressions of interest in
connection with an accelerated sale process co-ordinated by
PricewaterhouseCoopers LLP.
Information on the Conviviality Direct businesses
Matthew Clark is the largest independent distributor to the UK
on-trade drinks sector. It offers a range of over 4,000 products,
including beers, wines, spirits, cider and soft drinks, sourced
from in excess of 300 suppliers. Matthew Clark has a nationwide
distribution network of 15 depots and sales team of over 250
serving the independent free trade and national accounts as well as
a state-of-the-art on-line ordering system.
Bibendum is one of the largest wine, spirits and craft beer
distributors and wholesalers to the UK on-trade and off-trade, with
a particular focus on wine. It offers a range of over 4,000 wines,
spirits and craft beers sourced from over 400 suppliers from over
20 different countries.
The sale includes the disposal of Catalyst, the Company's brand
representation business, and Peppermint the Company's outdoor
events business.
As released by C&C in its announcement this morning, in the
latest audited accounts for the 52 weeks ended 30 April 2017, the
Conviviality Direct businesses had gross revenues of GBP1,219
million and adjusted EBITDA of GBP51.3 million (pre central
costs)(2) . Gross assets are approximately GBP230 million.
Information on C&C
C&C is listed on the Irish and London Stock Exchanges and is
a leading manufacturer, marketer and distributor of branded cider,
beer, wine and soft drinks. C&C brands include: Bulmers the
leading Irish cider brand; Tennent's, the leading Scottish beer
brand; Magners the premium international cider brand; Tipperary
Water; Finches soft drinks, as well as a range of niche, premium
and craft ciders and beers. C&C is also a leading drinks
wholesaler in Scotland and Ireland, where it operates under the
Tennent's and C&C Gleeson brands respectively.
The Board consider that the offer from C&C represents the
best outcome for creditors, suppliers, customers and employees of
the Conviviality Direct business. C&C have undertaken to
provide substantial funding to the Conviviality Direct business to
ensure creditors are paid and to address the cash flow constraints
that have been encountered. C&C have paid a nominal sum for the
shares acquired and have agreed to pay, in aggregate, GBP102
million to Conviviality's secured lenders over the next 12 months
to repay the debt of the Conviviality Direct business to such
banks.
Conviviality Retail
The Company continues to pursue opportunities in respect of the
Conviviality Retail business and will provide an update in due
course.
No other companies in the Group have had administrators
appointed and such other companies continue to trade.
The Board wish to thank its customers, suppliers, employees and
banking syndicate for their continued support during this difficult
period for the Company.
Temporary Suspension of Trading on AIM
The shares of Conviviality Plc remain suspended pending further
notice.
(1) Conviviality Direct includes the Conviviality Trading
Division, which was consolidated into Conviviality Direct following
the organisational change announced in January 2018. Trading
companies to be acquired by C&C include Conviviality Group
Limited (trading as Matthew Clark, Bibendum, Catalyst PLB and CDC),
Walker & Wodehouse Wines Limited, PLB Group Limited, Elastic
Productions Limited, Peppermint Events Limited and The Wondering
Wine Company Limited.
(2) As per PWC IM - (March 2018) financials for Conviviality
Direct as extracted from the audited financial statements of
Conviviality Plc for the 12 months ended 30 April 2017, adjusted
EBITDA is prior to allocation of group and central overheads,
interest, depreciation, amortisation and exceptionals.
Enquiries:
Investec (Nominated Adviser and Broker) Tel: 020 7597 5970
Garry Levin / David Flin / Daniel Adams
FTI Consulting Tel: 020 3727 1000
Jonathon Brill / Georgina Goodhew / Fiona Walker
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public domain.
The person responsible for arranging release of this information on
behalf of the Company is Ciaran Stone, Group Head of Legal &
Company Secretary.
This information is provided by RNS
The company news service from the London Stock Exchange
END
DISUSANRWAASRAR
(END) Dow Jones Newswires
April 04, 2018 12:14 ET (16:14 GMT)
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