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Kitwave Group PLC announces acquisition of WestCountry Food Holdings Limited

Kitwave Group PLC, the delivered wholesale business, has announced that the Group has acquired the entire issued share capital of WestCountry Food Holdings Limited, a specialist fresh produce wholesaler to the foodservice sector. The total gross consideration payable for the acquisition is £29.0 million in cash and has been funded from the Group's current banking facilities and a new three-year revolving credit facility provided by its existing banking partners.

Established in 1856, WestCountry is a leading wholesaler of local, regional and imported fresh produce in the South West of England. The WestCountry business has developed an unrivalled network of dedicated, high-quality local growers of seasonal fresh produce, as well as direct supply links with national and international fresh produce markets.

WestCountry reported audited turnover of £29.7 million and profit before tax of £3.9 million for the financial 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 cash and a freehold property with a book value of c. £1.2 million. The multiple being paid for the Acquisition, excluding cash and the value of the freehold, is c. 4.4 times annual run rate EBITDA.  The Board believes that the Acquisition will be immediately earnings enhancing.

The acquisition will be incorporated into Kitwave's existing Foodservice division which currently comprises the trading operations of H.B. Clark & Co. (Successors) Limited, David Miller Frozen Foods Limited and M. J. Baker Foodservice Limited.

Click here to read the full press release.

For more information:
Paul Young
David Brind
Kitwave Group PLC
Tel: +44 (0) 191 259 2277
www.kitwave.co.uk

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