Conviviality Direct bought by Magners Cider owners

Conviviality Direct, the UK's largest independent drinks wholesaler to the on-trade which includes Matthew Clark and Bibendum, has been bought by Magners owners the C&C Group in a deal which has support from the huge international beer specialists, AB InBev.

The deal will see shareholders paid a nominal amount, but creditors will be paid in full. C&C will also make available £102 million to support the business. They are also expected to purchase the group's assets valued at £230 million.

As you may recall things rapidly turned bad for Conviviality after a profits warning and an unaccounted £30 million bill from HMRC. The CEO Diana Hunter stepped down shortly afterwards and they then tried unsuccessfully to raise £125 million in new shares to fund the business.

Molson Coors, the North American Brewing giant that makes Carling and Cobra, has emerged as a contender to buy the retail arm of Conviviality which includes 700 franchise shops under the Bargain Booze and Wine Rack brands.