Franchised off-licence chain Conviviality Retail has used part of the capital it raised through its listing on the Alternative Investment Market (AIM) in July to close a new deal.
The £1.65 million acquisition of Wine Rack brings to Conviviality Retail a business which sells wine, spirits and tobacco through 22 locations predominately in London.
Back when Conviviality Retail, which counts Bargain Booze as one of its brands, listed on AIM, the business outlined a growth strategy which included a focus on its wine offering and the South of England.
The current Wine Rack business was acquired by its management in November 2009, and was subsequently grown from 13 to 22 stores.
Diana Hunter, CEO of Conviviality Retail, comments, ‘This acquisition accelerates our expansion into the wine market, provides the company with additional expertise that will benefit our franchisees and increases our footprint in the South of England, including adding scale in the important London market.
‘The combination of greater buying power for Wine Rack and increased wine market expertise for Conviviality make this acquisition a positive move for all concerned.’
The company’s listing on London’s junior exchange raised £64 million, and effectively provided a market capitalisation of £66.7 million. Private equity firm ECI Partners exited its interest through the listing.
Through its Bargain Booze and Thouroughgoods offerings, Conviviality Retail has 611 stores and 451 franchisees.