Kitwave Wholesale Group has continued down its acquisition path by snapping up Creed Foodservice for an initial £60m.
The deal announced this morning could rise to £71.6m, with up to a further £10m payable over two years dependent on performance, and additional consideration of £1.16m.
According to Kitwave, Creed has delivered sales of £130.2m for the year to May 2024 with an EBITDA of £10.2m and adjusted operating profit of £8.3m. Its latest audited accounts filed at Companies House showed a turnover of £124.2m for the year to 31 December 2023.
Kitwave moved its foodservice operations into the Country Range buying group in July, of which Creed has been a longstanding member.
Creed said it will take on the principal role within Kitwave’s foodservice division, which includes David Miller Frozen Foods, Total Foodservice Solutions, MJ Baker and WestCountry Food Holdings. The addition of Creed will see Kitwave’s foodservice division reach sales of approaching £275m. Three Creed depots will take the number of sites within the division to 16 including on-trade depots.
Creed Foodservice will keep its name and operations including its sales, head office teams, and management team and board.
“We have been evaluating our plans to take our business to the next stage for some time now and are delighted to be able to share our growth plans,” said Creed Foodservice CEO Chris Creed.
“Our objectives have always been to keep the Creed name, remain a member of the Country Range Group, secure the right investment and strengthen our infrastructure and capacity to secure our long-term growth; and I’m pleased to say that all these goals have been achieved.
“Creed’s ethos and business approach remain at the heart of our operations. Creed has thrived on family values for over 50 years and our people, culture and values remain woven into the fabric of our extended business. This move strengthens our position within the market, offering the best possible outcome for our business, people and customers.”
Kitwave Group CEO Ben Maxted said: “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.”
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