LONDON, UK: Kitwave Group plc (AIM: KITW), the delivered wholesale business, has acquired the entire issued share capital of WestCountry Food Holdings, a specialist fresh produce wholesaler to the foodservice sector.
The total gross consideration payable for the acquisition is £29.0 million in money and has been funded from the Group’s present banking facilities and a brand new three-year revolving credit score facility provided by its existing banking partners.
Established in 1856, WestCountry Food is a number one wholesaler of local, regional and imported fresh produce within the South West of England. The WestCountry enterprise has developed an unrivalled community of dedicated, high-quality native growers of seasonal fresh produce, in addition to direct provide hyperlinks with nationwide and worldwide fresh produce markets.
WestCountry Food reported audited turnover of £29.7 million and revenue earlier than tax of £3.9 million for the monetary year ended 1 January 2022.
As at 1 January 2022, WestCountry had net assets of £11.0 million. The acquired balance sheet includes c. £7.8 million of money and a freehold property with a book worth of c. £1.2 million. The a number of being paid for the Acquisition, excluding money and the worth of the freehold, is c. 4.4 times annual run rate EBITDA. The Board believes that the scquisition will be instantly earnings enhancing.
The acquisition will be incorporated into Kitwave Group’s existing Foodservice division which currently comprises the buying and promoting operations of H.B. Clark & Co. (Successors) Limited, David Miller Frozen Foods Limited and M. J. Baker Foodservice Limited.
Commenting on the acquisition, Paul Young, Chief Executive Officer of Kitwave Group, said: “The acquisition of WestCountry enables us to expand our product vary to incorporate high-quality fresh produce and enhances our existing foodservice providing within the South West, following the acquisition of M. J. Baker earlier in 2022.
“We are delighted to welcome the WestCountry team to Kitwave and look ahead to efficiently integrating the enterprise into the Group’s Foodservice division and additional extending our nationwide reach.
“The Group continues to commerce well and regardless of wider macroeconomic pressures, the Directors believe the outlook stays positive. We look ahead to updating shareholders additional on our progress.”
Kitwave is a delivered wholesale business, specialising in promoting and delivering impulse products, frozen and chilled foods, alcohol, groceries and tobacco to roughly 39,000, primarily independent, customers.