Conviviality buys Bibendum PLB for £60m

3rd May 2016 15:42

(ShareCast News) - UK alcohol wholesaler Conviviality has conditionally agreed to buy Bibendum PLB for £60m.Conviviality said the acquisition of Bibendum - a distributor and wholesaler of wine, spirit and beer to the UK on-trade and off-trade markets - will be funded through the placement of shares and a loan.For the £40m cash consideration payable under the deal, the group plans to place 15,609,757 new ordinary shares at a price of 205p each to raise gross proceeds of £32m. The company will take out a further £10m term loan to be drawn down under revised bank facilities with existing lenders."We believe the acquisition will give rise to significant potential synergies and increase returns for Conviviality's shareholders," said Diana Hunter, chief executive at Conviviality.Shares fell 2.93% to 207.25p at 1555 BST.