Piper Alderman advises on $10 billion merger to create Australia’s largest integrated drinks and hospitality business

Woolworths has reached an agreement with its joint venture partner, Bruce Mathieson Group, to merge the Endeavour Drinks business (which includes the Dan Murphy’s, BWS and Cellarmasters businesses) with the drinks and hospitality business run by ALH group (which operates over 300 licensed venues and more than 550 retail liquor outlets across Australia). 

Piper Alderman principals, Bruce Cameron and Alasdair McLean, are advising Bruce Mathieson Group on the deal which, upon completion, will create a market leading integrated drinks and hospitality business, expected to be called Endeavour Group Limited, with $10 billion in annual sales and $1 billion of EBITDA. Bruce Mathieson Group will own 14.6 per cent of the new Endeavour Group business, and Woolworths will own 85.4 per cent.

Following the merger, Woolworths has announced it will pursue a separation from the merged group by demerger or other value accretive alternative in respect of its investment, although it is expected to retain a minority stake in the event of a demerger.