Kitwave has unveiled a £70m acquisition of Creed Catering Supplies, signalling a significant expansion in the foodservice sector. This strategic move will be partially funded by a £31.5m capital raise on the Stock Market.
The North Shields-based company’s acquisition of this family-owned food wholesaler will extend its geographical footprint and operational capabilities, setting the stage for future growth.
Kitwave is set to acquire Gloucestershire-based Creed Catering Supplies for an initial £60m in cash, with an additional £10m payable over the next two years, contingent on performance targets. The deal will be financed through an increase in Kitwave’s banking facilities as well as a £31.5m capital raise. The company’s shares were successfully placed on the Stock Exchange at a price of 305p each.
Creed, a family-owned food wholesaler, serves multiple sectors including leisure, hospitality, education, and care. Last year, it reported revenues of £124.2m and an operating profit of £7.8m.
Maxted added, “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.”
Formed in 1998 with a single confectionery cash-and-carry, Kitwave has grown significantly over the last 13 years through a series of acquisitions. It listed on the Stock Exchange in 2021, demonstrating its ongoing expansion strategy.
The company’s focus on creating a fully integrated national delivery network is aimed at increasing operational efficiencies and capitalising on new growth opportunities.
This strategic move aligns with Kitwave’s long-term vision of becoming a leading foodservice provider in the UK, leveraging both organic growth and future acquisitions.
Analysts have noted that the acquisition is likely to provide substantial financial and operational benefits, reinforcing Kitwave’s market standing.
The acquisition of Creed Catering Supplies represents a significant milestone for Kitwave, promising enhanced revenues and expanded market reach. This strategic move is poised to solidify Kitwave’s position in the foodservice sector.
With successful capital raising and a history of strategic acquisitions, Kitwave is well-positioned for continued growth and market expansion. The integration of Creed is expected to bring substantial benefits, ensuring a prosperous future for the company.
