FAST-growing cash and carry group Kitwave has bought a Yorkshire-based wholesaler as part of its plans to create more consolidation in the sector.
The North Tyneside-based group, which trades as M&M Value, has taken over Teatime Tasties, its third acquisition since receiving a £7.5m investment from NVM Private Equity in March last year to fund growth.
Teatime Tasties, which acts as wholesaler of biscuits, cakes, confectionery and soft drinks, was set up in 2000 and employs 61 staff between its delivered goods business in Hudderfield and a smaller cash and carry in Manchester.
Kitwave managing director, Paul Young, said: “I have known the Teatime Tasties owners and their business for many years. This is a strong performing, well-run company that fits our criteria in terms of operations, geography, products and customer base.”
Kitwave bought Stockport business Andersons Wholesale in May 2011 and Cramlington-based Automatic Retailing three months later.
The North Tyneside group was set up in 1987 as an acquisition vehicle to buy M&M Value, which was a small confectionery wholesale business.
Since then, the group has grown to include Turner & Wrights, FW Bishop & Son, Westone Wholesale, Andersons Wholesale, Automatic Retailing and now Teatime Tasties.
Kitwave’s turnover has increased from around £15m in 2006 to £155m this year and the latest addition brings staff numbers to 290.
Mauro Biagioni, director of NVM Private Equity, said: “Teatime Tasties is another piece in the jigsaw for Kitwave as it continues to successfully grow through consolidation in a fragmented market.
“We bought into management’s growth strategy at the time of our investment and Kitwave has stuck to its plan. NVM is pleased to support the team as they look to acquire further businesses across the UK.”
Since NVM’s investment in the business, David Brind has been appointed as finance director and David Brock as chairman.
Kitwave was advised on the deal by corporate finance partner Craig Swinhoe and Newcastle-based Muckle LLP.