Zeus Capital acted as financial adviser, nominated adviser and joint bookrunner to Crewe-headquartered Conviviality Retail on the transaction, which included a £130m equity fundraise and a debt raise of £170m.

Matthew Clark, which is based in Bath, is one of the largest independent distributors to the UK on-trade drinks sector, delivering to approximately 17,000 premises each year. The company offers a range of more than 4,000 products including beers, wines, spirits, ciders and soft drinks, sourced from in excess of 300 suppliers.

"The combination of the two companies is a great strategic fit and a transformational acquisition for Conviviality," said Diana Hunter, chief executive of Conviviality Retail.

"Matthew Clark is a significant wholesaler in the drinks industry, larger than the next seven independent operators combined, and together with Conviviality this creates a unique business that addresses both on-trade and off-trade retailers."

For the year ended 28 February 2015, Matthew Clark generated revenues of £811.2m and adjusted EBITDA of £25.5m.

Conviviality Retail, meanwhile, owns Bargain Booze and Wine Rack, with 624 stores across the country. It listed on AIM in July 2013.

Tremayne Ducker of Zeus Capital said: "The acquisition is a crucial next step for Conviviality, and is the latest part of a journey that since 2013 has seen Zeus advise Conviviality on its AIM listing, and subsequently on a number of bolt on acquisitions."

In addition to completing the deal, Conviviality Retail has announced it will now be known simply as Conviviality.

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