
NVM’s Kitwave acquires Eden Farm
UK wholesaler Kitwave Wholesale Group, backed by NVM Private Equity, has acquired frozen food and ice-cream wholesale and distribution business Eden Farm.
The acquisition of the family-run business marks Kitwave's fourth acquisition since receiving funding worth £7.5m from NVM in March 2011 to support its acquisition strategy. No further funding was provided as part of this bolt-on.
NVM director Mauro Biagioni confirmed that the group's acquisition strategy is following the path set out three years ago and stated that Eden Farm will complement Kitwave's strategic portfolio of businesses.
The purchase was financed by a debt package supplied by Barclays. The bank increased the invoice discounting facility that it already provides in order to finance the buyout.
The deal benefits both Kitwave, which stands to broaden its range and increase its customer base to more than 22,000 following the buyout, and Eden Farm, which was reportedly keen to become part of a larger group. The group's combined turnover following this acquisition is forecast to reach almost £250m.
Company
Founded in 1964 by the Stephenson family, Eden Farm has grown from a one-minivan service delivering its home-grown produce to local customers, into a five-depot operation. From its headquarters in Peterlee, and four other depots across the UK, Eden Farm now has a national delivery network for frozen food and ice-cream.
Since 2009, the company's turnover has almost doubled to more than £40m.
People
NVM director Mauro Biagioni headed the deal team. Paul Young is group managing director of Kitwave. Eden Farm managing director Frank Stephenson will join the Kitwave board.
Advisers
Equity – Muckle, Craig Swinhoe (Legal); KPMG (Financial due diligence).
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