Conviviality offers failed P&H £25m for 109 stores

Independent alcohol wholesaler and distributor of alcohol and impulse products Conviviality announced on Friday that its wholly-owned subsidiary Bargain Booze has offered to acquire the business and assets of 109 convenience stores, and the rights as franchisor of a further 18 franchisee-operated stores trading under the fascia 'Central Convenience'.

The AIM-traded firm said the vendor is WS Retail, with the transaction carrying a cash consideration of £25m.

WS Retail is a wholly-owned subsidiary of Palmer & Harvey McLane, which entered administration on 28 November.

If the offer is accepted, Conviviality said it will fund the acquisition through the completed placing of 8,000,000 new ordinary shares at a price of 375p per placing share to raise gross proceeds of £30m.

The placing remained conditional on the acquisition being completed by 1630 GMT on Friday, and had been fully underwritten by Investec Bank, the company's sole bookrunner, broker and nominated adviser.

“We are pleased to have finalised terms for a potential acquisition of Central Convenience as it provides a clear opportunity to accelerate the growth and reach of the existing Conviviality Retail business, notably broadening our geographic footprint in the south and south west of England,” said Conviviality chief executive Diana Hunter.

“The acquisition, if effected, will support our strategic goal to be the drinks and impulse sector's leading independent distributor and we believe that potential exists for a range of synergies and increased returns for Conviviality's shareholders.

“We look forward to welcoming colleagues from Central Convenience to the Conviviality Group.”