One Equity Partners (OEP), a middle market private equity firm, has on Monday announced that it has completed the acquisition of wholesale distributor Kitwave Group.
In January, the boards of Kitwave and Kite UK Bidco Limited, a company owned by funds managed by OEP, announced that they had reached an agreement on the terms of a recommended cash acquisition, valuing the business at approximately Ā£251 million.
āKitwaveās operating model is centered on service reliability and local reach across the UK, making it a compelling platform within the UK wholesale distribution market,ā said Steve Lunau, partner at One Equity Partners.
āThe company has built a strong track record of completing and integrating acquisitions in a highly fragmented sector, and we believe this experience provides a solid foundation for future M&Aādriven growth. We look forward to partnering with management as the Company enters its next phase of growth.ā
Founded in 1987, Kitwave has 37 facilities nationwide and operates a fleet of 650 delivery vehicles fulfilling over 6,500 orders per day, serving the retail, wholesale, and foodservice markets.
āWe are pleased to partner with One Equity Partners,ā said Ben Maxted, chief executive of Kitwave. āTheir experience working alongside management teams in distributionāled businesses, together with a shared approach to longāterm growth, makes them a perfect fit for Kitwave. We believe this partnership supports a clear plan to continue developing our platform, investing in our business, and building on the service we deliver to customers nationwide.ā
Last month, the firm reported profits below expectations in the three months to 31 January after weaker hospitality demand and rising costs hit margins, despite stable overall revenues.