Irish drinks company C&C Group has revealed plans to acquire drinks distributors Matthew Clark and Bibendum (Matthew Clark Bibendum) from Conviviality with support from AB InBev.

The deal will also see C&C Group acquire Matthew Clark Bibendum’s subsidiaries Catalyst, Peppermint, Elastic and Walker & Wodehouse.

C&C will offer sufficient funds to support the on-going working capital and other cash requirements of the business, as well as added financial support to the transaction.

This move follows after Conviviality filed for administration in March. The company announced its intention to explore a potential sale of all or part of the business.

If approved, Matthew Clark Bibendum will have £102m of working capital facilities offered by its current lender group, repayable in instalments over the 12 months following completion. C&C Group noted that Matthew Clark Bibendum will operate as an independent business in the UK following the acquisition.

“We hope today’s announcement can put an end to this period of disruption and uncertainty.”

C&C Group CEO Stephen Glancey said: “We know the Matthew Clark and Bibendum businesses very well. They are great businesses with unparalleled on-trade market access, a wide range of supplier relationships and supported by a knowledgeable and loyal employee base.

“The last few weeks have been challenging for employees, customers and suppliers alike. We hope today’s announcement can put an end to this period of disruption and uncertainty.

“We look forward to working with our new colleagues and other stakeholders to bring stability and restore the group’s position as one of the leading and most respected drinks suppliers to the UK hospitality sector.”

Matthew Clark is a distributor of alcoholic beverages to restaurants and bars, supplying products such as beer, wines, spirits, ciders and soft drinks from 18 distribution sites in the UK.

Bibendum is one of the largest wine, spirits and craft beer distributors and wholesalers in the UK on-trade and off-trade, offering a range of more than 4,000 wines, spirits and craft beers.