17th Apr 2007 14:00
Punch Taverns PLC17 April 2007 PUNCH TAVERNS PLC ("Punch" or "the Group") Punch and Constellation Brands, Inc. form joint venture ownership structure forMatthew Clark Punch, the UK's largest pub operator, announces that it has formed a jointventure with Constellation Europe, a division of Constellation Brands, Inc., aleading international producer and marketer of beverage alcohol brands, toreinforce Matthew Clark's position as the UK's largest independent drinkswholesaler and distributor to the UK leisure and hospitality industry. Under the terms of the arrangement, Punch and Constellation Europe have eachbecome 50 percent owners of Matthew Clark and provide representation on a newholding company board. On a day to day basis however, the business willcontinue to be run independently by Steve Thomson, currently Managing Directorof Matthew Clark Wholesale Limited, and his Bristol-based team. Punch's investment in this joint venture is another step in its strategy toenhance the range of goods and services which the Group offers to its tenantsand lessees, by leveraging Matthew Clark's wines and spirits expertise in whichthey are market-leader. Matthew Clark, owned by Constellation Brands, Inc. since 1998, currently offersan extensive range of branded alcoholic and soft drinks to a customer base of upto 20,000 customers in the pub, club, hotel and restaurant trades. It employsover 1200 staff, has a national network of depots and a fleet of more than 200vehicles. For the year ended February 2007, Matthew Clark generated sales revenues of £550million and normalised EBITDA of £15 million. Under the terms of the jointventure, the business has been valued at £120m with Punch investing £35m, incash from existing resources, and the joint venture raising approximately £50million of new non recourse debt, proceeds of both paid to Constellation Europe.Constellation Europe has retained an investment of £35m. Punch will account forthe investment using the equity method. The investment is expected to beimmediately earnings enhancing, with further synergy benefits available in duecourse. Giles Thorley, Chief Executive of Punch Taverns plc, commented: "This is an innovative joint venture between the UK's leading pub operator and aleading global producer and marketer of branded alcohol, with all the benefitsof scale and reach you would expect. It will bring multiple benefits to Punch'stenants and lessees in terms of products and services and has the potential todeliver attractive financial returns for shareholders." 17 April 2007 ENQUIRIES:Punch Taverns plc Today: 020 7457 2020Giles Thorley, Chief Executive Thereafter: 020 7255 4002Robert McDonald, Finance DirectorJonathan Paveley, Commercial Director College Hill Tel: 020 7457 2020Justine WarrenMatthew Smallwood NOTES TO EDITORS About Matthew Clark Matthew Clark is the largest independent premier drinks supplier serving theUK's on-trade drinks industry. It offers customers a choice of wines, spirits,FABs, beers, ciders and soft drinks that is unrivalled in the UK for breadth andvalue. Matthew Clark was acquired by Constellation Brands, Inc. in 1998. Sincethat time, the business has rapidly expanded into a dynamic service-orientatedbusiness. The business is headquartered in Bristol and operates a nationalnetwork of regional distribution depots and a fleet of more than 200 vehicleswith extensive reach across the British Isles. It also operates twopurpose-designed contact centers located in Bristol and Glasgow. For furtherinformation, visit the Web site: www.matthewclark.co.uk About Constellation Brands Constellation Brands, Inc. is a leading international producer and marketer ofbeverage alcohol brands with a broad portfolio across the wine, spirits andimported beer categories. Well-known brands in Constellation's portfolioinclude: Almaden, Arbor Mist, Vendange, Woodbridge by Robert Mondavi, Hardys,Goundrey, Nobilo, Kim Crawford, Alice White, Ruffino, Kumala, Robert MondaviPrivate Selection, Rex Goliath, Toasted Head, Blackstone, Ravenswood, Estancia,Franciscan Oakville Estate, Inniskillin, Jackson-Triggs, Simi, Robert MondaviWinery, Stowells, Blackthorn, Black Velvet, Mr. Boston, Fleischmann's, PaulMasson Grande Amber Brandy, Chi-Chi's, 99 Schnapps, Ridgemont Reserve 1792 andthe Effen and SVEDKA vodka lines. Constellation Brands, through Crown ImportsLLC, imports and markets Corona Extra, Corona Light, Pacifico, Modelo Especial,Negra Modelo, St. Pauli Girl and Tsingtao beers. For additional informationabout Constellation Brands, as well as its product portfolio, visit thecompany's Web site at www.cbrands.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Punch Taverns PLC