20 May 2016
Acquisition, Equity & Debt Fundraise
- Post Deal Mkt Cap: £346m
Zeus Capital has acted as financial adviser and joint book-runner to Conviviality Plc on its £60m acquisition of Bibendum PLB.
Zeus Capital has acted as financial adviser and joint book-runner to Conviviality Plc on its £60m acquisition of Bibendum PLB. Zeus Capital advised on a £32m equity fundraise and the implementation of a new £30m debt facility. On completion, Conviviality had a market capitalisation of approximately £370m.
The acquisition of Bibendum supports Conviviality’s strategy to become the drinks sector’s leading specialist wholesaler in the on trade, off licence and convenience sectors. The acquisition will supplement the operations of Matthew Clark by adding significant expertise in wine and spirits as well as access to a wealth of new customer accounts.
Bibendum is a leading independent drinks wholesaler, with a significant presence in the South of England, revenues of over £271m and pro forma EBITDA for the year ended March 2016 of £6.7m. The acquisition of Bibendum adds to Conviviality’s UK drinks wholesale business resulting in combined annual sales of over £1.4bn.
As part of the acquisition, Zeus Capital was responsible for the associated £30m debt refinancing package (£10m acquisition debt and £20m working capital facilities), in addition to the £32m equity fundraise.
Since the deal was announced, support for the acquisition from the market has been strong, with Conviviality’s share price increasing from a placing price of 205p to 219p at the close of business on the date of completion 20 May 2016.
Zeus Capital advised Conviviality on its original AIM listing in July 2013, when it raised £66.7m at a price of 100p per share to facilitate a full exit for its private equity owner, ECI Partners and its subsequent £200m reverse takeover of Matthew Clark, the leading drinks wholesaler, in October 2015.
Diana Hunter, Chief Executive Officer at Conviviality Retail:
“We are pleased to be acquiring Bibendum PLB as the business will not only accelerate our strategy of expanding our wholesaling expertise into new markets and channels, but brings significant expertise to Conviviality in the off-trade wholesale market through the PLB business."
Tremayne Ducker, Zeus Capital:
"We are very pleased to have supported Diana and Conviviality on the acquisition of Bibendum PLB so quickly after advising on the transformational reverse takeover of Matthew Clark. Ever since Zeus advised on Conviviality’s successful IPO and exit for ECI in 2013 we have been able to provide integrated support across our Public Markets and M&A advisory teams on numerous material acquisitions, debt raises and equity fund raises.
This latest acquisition was achieved in very short timescales and benefited from the high levels of support from both equity and debt providers."