C&C acquires Asahi distribution operations as revenue softens

C&C ($CCR) agreed to acquire Asahi UK’s Nectar Imports wholesale business and direct-distribution operations for nominal consideration. The assets will be integrated into Matthew Clark Bibendum as part of a longer-term partnership involving Asahi brands. The arrangement includes customer relationships and operating assets rather than a purchase of Asahi’s wider beverage business.

The accompanying trading update showed first-half net revenue down approximately 3%. Branded revenue increased 2%, while distribution revenue fell 4%. C&C expects underlying operating profit of €43–44 million, consistent with its expectations, and maintained its full-year outlook. The transaction therefore comes against uneven trading conditions: growth in brands has not offset the decline in distribution, and the release does not quantify a new annual earnings contribution from the acquired operations.

Sources:

• C&C Group — acquisition and trading update, RNS / Investegate