Punch takes 50% stake in Matthew Clark

Punch Taverns and Constellation Europe have become joint owners of drinks wholesaler Matthew Clark.

Under the deal announced today, Punch and Constellation will provide representatives on the board of a new holding company.

This is an innovative joint venture between the UK's leading pub operator and a leading global producer and marketer of branded alcohol, with all the benefits of scale and reach you would expect.​Punch chief executive Giles Thorley.

Day-to-day running of Matthew Clark will remain with Steve Thompson, currently managing director of Matthew Clark Wholesale Limited, and his Bristol-based team.

Punch chief executive Giles Thorley said: "This is an innovative joint venture between the UK's leading pub operator and a leading global producer and marketer of branded alcohol, with all the benefits of scale and reach you would expect.​

"It will bring multiple benefits to Punch's tenants and lessees in terms of

products and services and has the potential to deliver attractive financial returns for shareholders."

Under the terms of the joint venture, the business has been valued at £120m, with Punch investing £35m in cash from existing resources.

The joint venture will raise approximately £50 million of new non-recourse debt, proceeds of both paid to Constellation Europe. Constellation Europe has retained an investment of £35m.

Punch will account for the investment using the equity method.

Punch expects the investment to be "immediately earnings enhancing, with further synergy benefits available in due course".