Kitwave continues acquisition run with £70 million deal

Wholesaler Kitwave Group has bought a fellow market operator in a £70 million deal.

The North Shields firm has acquired South of England’s Creed Catering Supplies Limited.

Kitwave has agreed to buy Creed for £60 million in cash, with up to a further £10 million in cash payable over two years dependent on performance targets being achieved.

To part finance the acquisition, Kitwave has proposed capital raising of more than ten million new ordinary shares to raise £31 million.

Bosses say the deal will result in a significant increase in financial scale, with projected revenue of more than £800 million, adjusted EBITDA of £55 million and adjusted operating profit of £42 million​.

Ben Maxted, Kitwave chief executive, said: “Creed has an exceptional heritage and is one of the UK’s leading foodservice wholesalers, so we are delighted to have reached this agreement, which will extend our foodservice division.

“Strategically, Creed will significantly expand our geographical presence, bridging our operations in the North and South and creating a fully integrated national delivery network.

“In line with our buy and build strategy, Creed is also expected to significantly enhance the group’s earnings along with providing material buying, operational and financial​ synergies.

“We are looking forward to working with Creed’s dedicated and experienced team and excited to see our foodservice division continue to go from strength to strength.”