Shareholders of the Kitwave Group have approved a deal of 295p per share for the acquisition by US private equity firm OEP Capital Advisers.
The deal, which equates to £250m, will see the group and its 37 depots become private again after becoming a public company 2021. Its chief executive Ben Maxted said: ‘We are excited by the prospect of working with OEP on the next chapter of our growth.’
“Since becoming a public company Kitwave has rapidly transformed from a regional foodservice operator into an enlarged UK-wide delivered wholesale business. OEP has an excellent track record of helping businesses like Kitwave to significantly scale, and the board believes that becoming a private company will provide greater financial flexibility to achieve its ambitions,” he added.
Read more: Kitwave Group H1 revenues increase by 26.7%
Steve Lunau, partner of OEP, said: “We are delighted to have the opportunity to partner with Kitwave to further strengthen its leading position in the UK grocery and foodservice wholesale market. We fully support Kitwave’s vision for long-term growth and believe our partnership will enable it to accelerate its strategy. We look forward to supporting Ben and the management team in continuing the impressive growth they have achieved over the past years.”
The shareholder approval follows a recent warning from the Group that full-year profitability was likely to come under pressure after weaker-than-expected demand in foodservice, with revenue for the three months ended 31 January was in line with the same period in the prior year.
