Irish drinks group C&C, known for its Bulmers and Magners ciders, has entered into an agreement to purchase the UK wholesale operations of Japanese beer company Asahi.
The transaction, which is expected to be finalized in October, will encompass Asahi UK's wholesale customer and supplier relationships, intellectual property, a leased depot, and assets including vehicles and stock. The deal also includes Nectar Imports, a supplier to the hospitality sector in southern England, and Asahi UK's direct distribution activities.
Following the acquisition, C&C plans to merge the acquired wholesale business into its existing Matthew Clark Bibendum (MCB) operations. C&C Chief Executive Roger White stated that the move presents a significant opportunity to introduce MCB's services to a large number of new customers while simultaneously enhancing the group's operational scale and efficiency.
The acquisition is projected to contribute positively to C&C's financial results for the current fiscal year, which concludes at the end of February 2027. The company reported that net revenues for the first half of the year, ending August 31, were down three percent year-on-year. This decline was attributed to a decrease in distribution turnover, which offset a two percent growth in branded sales. The reduction in distribution turnover stemmed from the strategic exit of lower-margin customer accounts and a broader market trend of declining outlet numbers and certain drink categories.
C&C anticipates its underlying operating profit for the first half to be between €43 million and €44 million, aligning with expectations. The group reiterated its confidence in meeting full-year consensus forecasts.
Shares in C&C saw a notable increase, rising 7.85% or 7.00 pence to 96.20 pence on Friday morning. This followed a period where the company's stock had declined by more than 40 percent over the preceding year.