Kitwave Wholesale Group has completed a refinancing deal which sees the business raise funds from lead investor Pricoa Capital Group and a co-investment partner Allstate, for a minority stake, in order to continue pursuing its acquisition strategy. The transaction also provides an exit for NVM Private Equity, which invested in the business in 2011.
Paul Young, CEO of Kitwave, said: “This deal marks the start of the next chapter of our growth story, which sees revenues on track to reach in excess of £260 million in the current financial year. During the last five years, since the NVM investment, we have made strategic acquisitions that have taken us into new markets, geographies and product ranges. During this time the business has also invested heavily in its infrastructure, IT and importantly in its senior management team. This new investment will allow us to develop further in some key focussed areas and we are excited about delivering on our ambitious expansion targets for the future. ”
Hugh Welch, Senior Partner, Muckle LLP, says: “This is a great deal for Kitwave and for the North East. Our region needs thriving and ambitious companies and inspirational business leaders. Paul, his team and the company epitomise these qualities and I am delighted that Muckle LLP played a part in helping this transaction to happen. I am certain that growth, job creation and further investment will flow from it.”
The deal also sees Kitwave maintain its longstanding relationship with Barclays, which has supported the business from inception, in conjunction with a new association with Yorkshire Bank.
David Collins, Barclays Relationship Director said: “Barclays has been the banking partner of Kitwave since the company was established in 1987 and this transaction is both a significant and pivotal milestone in Kitwave’s history as it paves the way for further expansion and growth. A highly professional and progressive brand that is thriving; the management’s ambitious growth plans is testament to their success and we’re delighted that we’ve been able to support with funding for their further development.”