C&C Group, the Irish drinks company behind Magners, Bulmers and Tennent's lager, has agreed to buy the UK wholesale arm of Japanese beer brand Asahi for a nominal sum.
The deal comes as C&C, which is listed on the London Stock Exchange, reported a slowdown in sales despite warmer weather over the summer.
The transaction, expected to complete in October, will hand C&C all of Asahi UK's wholesale customer and supplier relationships and agreements, along with the brand's intellectual property, a leased depot, and other assets including vehicles and stock.
It also covers Nectar Imports, a drinks supplier to pubs and restaurants across the south of England, as well as the direct distribution operations of Asahi UK.
Merger into Matthew Clark Bibendum
C&C plans to merge the Asahi wholesale business into its Matthew Clark Bibendum operations once the deal closes.
Roger White, chief executive of C&C Group, said the move represented an attractive opportunity to provide a significant number of new customers with Matthew Clark Bibendum's market-leading service and range proposition, while simultaneously delivering immediate scale and efficiency into the group's operations.
C&C said the deal is expected to make a small positive contribution to its results for the current financial year, which runs to the end of February 2027.
Trading update for the first half
Alongside news of the acquisition, C&C said trading over the first half of its financial year, which ended on August 31, had been in line with forecasts.
Net revenues fell three per cent year-on-year, as branded sales growth of two per cent was offset by a four per cent decline in distribution turnover.
The company said the distribution weakness stemmed from a planned exit of some lower-margin customer business, along with an ongoing decline in the number of outlets and certain drink categories across the market.
Underlying operating profit for the first half is expected to come in at between 43 million euros and 44 million euros, which C&C said was in line with expectations. The group reiterated its confidence in hitting consensus forecasts for the full year.
Who is involved
C&C Group is a major player in the UK and Irish drinks market, with a portfolio that includes the cider brands Magners and Bulmers and the lager brand Tennent's. Asahi is one of Japan's best-known beer brands, sold internationally by Japanese brewer Asahi Group Holdings.
Matthew Clark Bibendum is C&C's drinks distribution business, supplying pubs, bars and restaurants across the UK.
