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News
Punch take 50% stake in Britain’s biggest wholesaler
The UK’s largest pub company Punch Taverns has taken a 50% share in on-trade wholesaler and distributor Matthew Clark, owned by Constellation Brands.
The deal, announced yesterday, will mean Constellation and Punch Taverns each become 50% owners of Matthew Clark and a new holding company board has been created.
The day-to-day running of the business will continue to be headed by Steve Thomson, managing director of Matthew Clark, and the headquarters will remain in Bristol.
Constellation Brands expects to receive approximately £85 million from the deal. Punch Taverns are investing £35m in cash from existing resources, with the remainder coming from the issuance of debt by the joint venture.
David Phillips, finance director for Matthew Clark, said the capital from the joint venture would be invested in improving the efficiency of the company’s supply chain, customer service and IT systems, and expanding the sales force. He also stressed that Matthew Clark would retain its independence as Britain’s largest independent drinks wholesaler and distributor.
Graham Donald, marketing and business planning director for Matthew Clark added that the deal allows the on-trade drinks supplier “to accelerate plans”, and “would shorten the development period” of the company.
Initially, Matthew Clark will supply a number of Punch pubs with a range of wines and spirits and will progressively become the preferred supplier of the remaining tenanted pubs. “We hope over time Punch tenants and lessees will see the value of dealing with Matthew Clark,” said Donald.
Giles Thorley, chief executive of Punch Taverns, noted: “This is an innovative joint venture… with all the benefits of scale and reach you would expect. It will bring multiple benefits to Punch’s tenants and lessees in terms of products and services and has the potential to deliver attractive financial returns for shareholders.”
Key facts
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Punch Taverns is the UK’s largest pub company, with a portfolio of over 9,300 leased, tenanted and managed pubs.
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Matthew Clark is the UK’s largest independent drinks wholesaler and distributor. It was acquired by Constellation Brands in 1998.
© db Patrick Schmitt, 18/04/07