Leading wholesaler Kitwave has announced its acquisition of Creed Foodservice, one of the UK’s major foodservice providers, in a deal valued at up to £71 million. Based in North Tyneside, Kitwave has secured Creed for an initial payment of £61 million, with the potential for an additional £10 million contingent on performance targets over the next two years.
The acquisition, which was completed on 27 September, marks a significant milestone for Kitwave as it strengthens its Foodservice division, which already includes David Miller Frozen Foods, Total Foodservice, M.J. Baker Foodservice, and Westcountry Food Holdings. Creed, headquartered in Cheltenham, has recently demonstrated strong financial performance, reporting revenue of £130.2 million and operating profits of £8.3 million.
With this acquisition, Kitwave’s foodservice customer base expands to over 10.5 million, contributing to an annual revenue of £275 million. The deal is the latest in a series of strategic acquisitions for Kitwave, aimed at diversifying its operations and driving national growth. Earlier this year, Kitwave acquired fellow Northern wholesaler Total Foodservice, following the purchase of drinks distributor Wilds of Oldham last year.
Ben Maxted, CEO of Kitwave, expressed enthusiasm about the acquisition, stating, “Creed has an exceptional heritage and is one of the UK’s leading foodservice wholesalers. 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.”
Maxted further emphasised that the acquisition aligns with Kitwave’s buy-and-build strategy, expecting it to enhance the Group’s earnings and provide operational, financial, and buying synergies. He added, “We are looking forward to working with Creed’s dedicated and experienced team and are excited to see our Foodservice division continue to go from strength to strength.”
The acquisition was financed through a successful capital raise that included a placing and retail offer, in addition to bank funding secured from Kitwave Group’s lenders. The completion of the deal followed the exchange of contracts on 24 September.
Sara Worsick, a partner at Muckle, which advised Kitwave on the acquisition, remarked, “This deal solidifies Kitwave’s position as a top national wholesaler and creates further organic growth opportunities. Kitwave’s continued success is fantastic for our region, and we are looking forward to seeing this continue.”
David Brind, CFO at Kitwave, praised the support from Muckle, saying, “Muckle has been our trusted adviser for many years, with the team’s expertise and dedication being instrumental in supporting us through numerous successful transactions. Our acquisition of Creed is no different; Sara and the team demonstrated exceptional knowledge and tenacity at all times and worked diligently to ensure the best outcome for all on a restricted timetable.”
This acquisition positions Kitwave for further growth within the competitive foodservice sector, enhancing its capabilities and reach across the UK market.
