Ownership of independent drinks distributor Matthew Clark is set to move to Conviviality Retail Plc, as wine producer Accolade Wines and pub operator Punch Taverns have agreed to sell their shares to the company.
Accolade Wines will sell its half of the Matthew Clark shares to Conviviality for £100m. Meanwhile, Conviviality Brands, a subsidiary of Conviviality Retail, will acquire Punch's half of the shares for £100.7m.
Both agreements are subject to approval from shareholders of Conviviality and Punch. The deal is expected to be complete by October.
As part of the agreement, Accolade Wines and Punch Taverns both secured a 10-year contract with Matthew Clark. This will allow for Accolade's wines to continue being distributed in the on-trade via Matthew Clark. Matthew Clark will also supply Punch pubs with wines and spirit drinks products at agreed prices.
Punch chief executive Duncan Garrood said: 'We are pleased to have agreed the disposal of our investment in Matthew Clark and at a significant premium to our current book value. The sale of a non-core business will enhance our financial flexibility to pursue our strategic objectives for our core activities.'
Conviviality owns one of the largest franchised off-license and convenience chains in the UK, amounting to 624 stores as of April of this year, including Bargain Booze, Wine Rack and Thorougoods.