Kitwave Group Announces Acquisition of Creed Foodservice: Strengthening National Reach and Driving Growth
Kitwave Group plc has announced an exciting development with its agreement to acquire Creed Catering Supplies Limited (Creed Foodservice), one of the UK’s leading independent food wholesalers. Kitwave Group CEO Ben Maxted commented:
“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. 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.”
Strategic Importance of the Acquisition
The acquisition of Creed Foodservice, valued at up to £71.16 million, represents a major opportunity for Kitwave to expand its national footprint and strengthen its position in the foodservice market. Following the acquisition, Creed will take on a principal role within Kitwave’s foodservice division, which already includes David Miller Frozen Foods, Total Foodservice Solutions, MJ Baker, and WestCountry Food Holdings. This addition will propel Kitwave’s foodservice division to nearly £275 million in annual sales, solidifying its position as a leading player in the sector.
This acquisition will not only boost Kitwave’s earnings but also provide the Group with:
- Geographic Expansion: Creed’s strong presence in the South of England complements Kitwave’s existing operations, bridging the Group’s northern and southern operations for a truly national network.
- Operational Synergies: Kitwave expects to realise significant synergies in buying power, operations, and financial efficiencies, further enhancing the Group's performance.
- Growth Opportunities: This acquisition sets the stage for future organic and acquisitive growth, with the combined Group projected to generate over £800 million in revenue.
Financial Structure and Capital Raising
To finance the acquisition, Kitwave plans to raise £31 million through a placing of 10.16 million new shares at 305 pence per share, supported by institutional investors. Additionally, a Retail Offer of up to £0.5 million will allow retail shareholders to participate. The acquisition’s initial consideration of £60 million in cash will be funded through these initiatives, with up to £10 million more payable based on performance targets over the next two years.
Enhancing Kitwave’s National Delivery Network
A key benefit of the Creed acquisition is the integration of Creed’s well-established logistics network with Kitwave’s existing infrastructure. This will create a fully integrated national delivery network, improving service for both existing and new customers and extending Kitwave’s reach across the UK. This enhanced network will enable Kitwave to capitalise on growth opportunities in new markets, further solidifying its leadership in the wholesale sector.
A Bright Future for Kitwave
With Creed Foodservice now part of the Kitwave family, the Group is on track to strengthen its leadership in the UK wholesale market. Projected to generate over £800 million in revenue and £42 million in operating profit, the enlarged Group will be well-positioned for continued growth and success.
The acquisition is expected to complete by the end of September 2024, and Kitwave is excited to welcome Creed’s experienced team as part of its future success.
This acquisition is a key milestone in Kitwave's growth strategy, expanding its geographic reach, enhancing its service capabilities, and unlocking new opportunities for future growth. With a fully integrated national network, Kitwave is poised to continue delivering exceptional value to customers, partners, and shareholders.
