Conviviality close to Matthew Clark takeover

Conviviality Retail has emerged as the preferred bidder for the takeover of UK drinks distributor Matthew Clark.

Conviviality first revealed it was in talks to buy Matthew Clark in July (Photo: Matthew Clark)

Conviviality, which owns the Wine Rack and Bargain Booze retail chains, has entered into a “non-disposal undertaking” with the on-trade supplier, which is jointly owned by Punch Taverns and Hertford Cellars.

The agreement prevents Matthew Clark from being sold to a third-party before 4 September, and comes with break fee that would see £1 million paid to Conviviality if the deal isn’t secured by that date.

Matthew Clark’s owners would also be forced to pay the break fee to Conviviality if the company is sold to a third party within 180 days of withdrawing from the deal.

The agreement comes after Conviviality confirmed rumours that it was in talks to buy the on-trade supplier in July.

Conviviality said it will “provide shareholders with further updates in due course.”