Member Article

Ice cream distributors snapped up by Tyneside wholesalers

North Shields-based Kitwave Wholesale Group has acquired frozen food and ice cream wholesale firm, Eden Farm.

Peterlee-based Eden Farm becomes the seventh acquisition for Kitwave, which was set up in 1987 as a vehicle to purchase the small confectionary wholesaler, M&M Value.

Eden is a 50-year-old family business with five depots and a national delivery network operating from Peterlee, Cambridge, Bradford, Cardiff and Glasgow.

Since 2009 the firm’s turnover has reached over £40 million. The deal will increase Kitwave’s staff to over 450.

Paul Young, managing director of Kitwave Group, comments: “Eden’s Managing Director, Frank Stephenson, and I have known each other for a number of years and we are delighted with the acquisition.

“Eden Farm is a natural fit for the group — increasing Kitwave’s product range and providing a wider customer reach across the UK. Frank was keen to become part of a larger group, and Eden will continue to succeed and grow with the Kitwave Group behind it.”

Kitwave managing director, Paul Young

Mauro Biagioni, director of NVM Private Equity, comments: “Kitwave’s acquisition strategy is going exactly to plan since we invested three years ago, and Eden Farm will further complement Kitwave’s strategic portfolio of businesses.

“We are delighted that Frank will join the Kitwave board, where they will benefit from his industry expertise. Paul and the team are keen to make further acquisitions across their industry to continue to grow in a fragmented market.”

Kitwave was advised on the deal and the funding by a team at commercial law firm Muckle LLP, headed by corporate Partner, Craig Swinhoe, who commented: “We are delighted to help Kitwave to make another strategic acquisition to increase its national expansion.

“We have enjoyed working with the team at Kitwave once again, on their fourth acquisition in three years. It’s great to see a North East business doing so well.”

The deal was funded by facilities provided by Barclays Bank and Kitwave were supported on the transaction by financial due diligence and tax advice provided by KPMG.

Nicola Boardman from Barclays commented: “As a longstanding Barclays customer we are delighted to support Kitwave with facilities for the acquisition of Eden Farm. This transaction brings together two strong North East based businesses, who both have a national footprint and provides a real opportunity for the group to further grow their customer base.”

This was posted in Bdaily's Members' News section by Tom Keighley .