North East wholesaler Kitwave Group plc has agreed to be acquired by Kite UK Bidco Limited, a company owned by funds managed by OEP Capital Advisers, L.P., in an all-cash transaction valuing the UK wholesale distributor at approximately £251 million.
Under the terms announced, Kitwave shareholders will receive 295 pence per share, representing a premium of 33.5 percent to the company’s closing price of 221 pence on the last practicable date before the announcement, according to a company press release.
The acquisition will be implemented through a court-sanctioned scheme of arrangement, with completion expected during the first quarter of 2026.
Since launching in 1987, Kitwave has grown from a single-site confectionery wholesale business based in North Shields to a business with a network of 37 depots across the UK.
It grew significantly on the back of a number of strategic acquisitions, including Automatic Retailing and Eden Farm, to add frozen, chilled, and own-label products to its portfolio, while also increasing its UK-wide delivery capability.
In interim results for the year ended 31 October 2025, announced today (22 January), the business reported revenues of £802.7m, with pre-tax profits of £22.4m.
BidCo is a newly formed private limited company, launched in connection with the acquisition. It is indirectly wholly-owned by funds managed or advised by OEP, a middle market private equity firm was founded in 2001 and spun out of JP Morgan in 2015. It is focused on the industrial, healthcare, and technology sectors.
In a separate announcement on the London Stock Exchange, OEP said it views Kitwave as a "resilient and attractive business with strong foundations for continued expansion".
It added that the acquisition represents a "compelling opportunity to advance Kitwave's strategic ambitions, accelerate its long-term growth trajectory and reinforce its position as a leading national delivered wholesaler".
Kitwave’s board of directors unanimously recommended that shareholders vote in favor of the transaction. The company has already secured irrevocable undertakings and a letter of intent to vote in favor from shareholders representing approximately 21.6 percent of its issued share capital.
Kitwave, which went public in 2021, operates a network of 37 depots across the UK, delivering products including frozen foods, alcohol, groceries and tobacco to around 46,000 customers, primarily independent retailers and foodservice providers.
OEP, a middle-market private equity firm that spun out of JP Morgan in 2015, cited Kitwave’s nationwide network and track record of sustainable growth as key factors behind the acquisition.
"We fully support Kitwave’s vision for long-term growth and believe our partnership will enable it to accelerate its strategy," said Steve Lunau, Partner at OEP, in a statement.
Ben Maxted, Chief Executive Officer of Kitwave, stated that "becoming a private company will provide greater financial flexibility to achieve its ambitions."