Goodbody Stockbrokers' has said that the acquisition by C&C Group of the remaining 50% of Wallaces Express, a Scotland-based wine and spirits wholesaler, "is more of strategic than financial significance" for the business.
"The Scottish market now represents almost 30% of C&C’s profits and, along with its Irish business, has the most sustainable long term market prospects for the company," said Goodbody's Liam Igoe.
The completion of the deal now means that C&C Group has taken over a full-scale drinks distribution business in both Scotland and Ireland (via its takeover of the Gleeson Group), indicating a move towards expanding its on-trade distribution model in its key markets.
C&C acquired 50% of Wallaces Express in March 2013. Following the current deal, Wallaces Express will be branded as Wallaces TCB.
"Our decision to acquire the business outright represents further investment by C&C in Scotland and is the latest stage of our plans to put customers at the heart of our support for the independent on-trade," said John Gilligan, Managing Director of Tennent Caledonian Breweries, which is part of C&C Group.
“We plan to grow the business further, finding more opportunities for cross-selling to our customers, particularly in wines and spirits and soft drinks.”
© 2014 - Checkout Magazine by Stephen Wynne-Jones
