REG - Kitwave Group PLC - Acquisition of M.J. Baker Foodservice Limited

KitwaveAnnouncement

11/02/2022 07:00

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RNS Number : 3643B  Kitwave Group PLC  11 February 2022

 

11 February 2022

Kitwave Group plc

 

("Kitwave", the "Group" or the "Company")

 

Acquisition of M.J. Baker Foodservice Limited

 

Kitwave Group plc (AIM: KITW), the delivered wholesale business, is pleased to
announce that the Group has acquired the entire issued share capital of M.J.
Baker Foodservice Limited ("M.J.Baker"), the West Country's leading
independent foodservice supplier (the "Acquisition"). The total gross
consideration payable for the Acquisition is £24.5 million in cash and has
been funded from the existing banking facilities available to the Group.

 

Founded in 1999 and based in Newton Abbott, Devon, M.J. Baker offers over
3,500 products in ambient, chilled and frozen foods, together with alcohol,
confectionery and non-food items. The leading brands are complemented by a
range of products under the Bakers Best Buy lines.

 

M.J. Baker reported audited turnover of £16.9 million and profit before tax
of £1.5 million for the financial year ending 31 December 2020.  As at 31
December 2020, M.J. Baker had net assets of £7.9 million. The balance sheet
being acquired includes c. £6 million of cash and a freehold property with a
book value of c. £1 million.  The multiple being paid for the Acquisition,
excluding cash and the value of the freehold, is c. 6x annual run rate EBITDA.
The Board believes that the Acquisition will be immediately earnings
enhancing.

 

The Acquisition will be incorporated into Kitwave's existing Foodservice
division which currently comprises the trading operations of H.B. Clark &
Co. (Successors) Limited and David Miller Frozen Foods Limited.

 

Commenting on the Acquisition, Paul Young, Chief Executive Officer of Kitwave,
said:

 

"The acquisition of M.J. Baker is an excellent addition to our Foosdservice
division and expands the Group's nationwide reach into the South West.  M.J.
Baker is renowned for providing a quality delivered solution to its customers,
a key part of the Kitwave Group ethos.

 

"I am delighted to welcome the M.J. Baker team to Kitwave and we look forward
to continuing to build our nationwide foodservice offering as part of our
growth strategy."

 

- Ends -

 

For further information please contact:

                                                       Tel: +44 (0) 191 259 2277

 Kitwave Group plc

 Paul Young, Chief Executive Officer

 David Brind, Chief Financial Officer

 www.kitwave.co.uk (http://www.kitwave.co.uk/)

 
 Canaccord Genuity Limited                             Tel: +44 (0) 20 7523 8150

(Nominated Adviser and Sole Broker)
 

 Bobbie Hilliam

 Georgina McCooke

 Alex Aylen - Sales

 
 Yellow Jersey PR                                      Tel: +44 (0) 20 3004 9512

(Financial media and PR)

 Sarah Hollins

 Henry Wilkinson

 Matthew McHale

 

This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the
Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication
of this announcement, this information is now considered to be in the public
domain.

 

Company Overview

Founded in 1987, following the acquisition of a single-site confectionery
wholesale business based in North Shields, United Kingdom, Kitwave is a
delivered wholesale business, specialising in selling and delivering impulse
products, frozen and chilled foods, alcohol, groceries and tobacco to
approximately 38,000, mainly independent, customers.

 

With a network of 26 depots, Kitwave is able to support delivery throughout
the UK to a diverse customer base, which includes independent convenience
retailers, leisure outlets, vending machine operators, foodservice providers
and other wholesalers, as well as leading national retailers.

 

The Group's growth to date has been achieved both organically and through a
strategy of acquiring smaller, predominantly family-owned, complementary
businesses in the fragmented UK grocery and foodservice wholesale market.

 

Kitwave Group plc (AIM: KITW) was admitted to trading on AIM of the London
Stock Exchange on 24 May 2021.

 

For further information, please visit www.kitwave.co.uk
(http://www.kitwave.co.uk) .

 

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