kitwave david brind paul young

Kitwave has completed a multimillion-pound refinancing deal to continue its consolidation of the independent wholesale market.

Lead investor Pricoa Capital Group, a mezzanine debt fund, and co-investment partner Allstate have taken a minority stake as a result.

The Grocer revealed in January that the fast-growing wholesaler was weeks away from securing new investment, with founder Paul Young set to significantly increase his 56% holding.

NVM Private Equity, which invested £7.5m in 2011 for a 40% stake to help Kitwave’s acquisition spree, has exited the business in the deal.

Young, who founded Kitwave in 1998 and has ambitions to grow revenues to £500m, said the deal marked the start of the next chapter of Kitwave’s growth story.

“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,” Young said.

“The new investment will allow us to develop further in some key focused areas.”

Kitwave, the 15th-largest UK wholesaler in The Grocer Big 30, has been transformed from a regional confectionery C&C to a diversified, national player thanks to its buy-and-build strategy. It has acquired 11 businesses since 2006, six since NVM came on board, growing revenues from £17m to £227.8m.

Kitwave now supplies independent c-stores from 15 depots across the UK and operates the My Store fascia.

James Murray, head of consumer M&A at KPMG, who advised Kitwave, said: “This funding deal gives NVM Private Equity a strong exit, delivers Kitwave with the platform to continue its growth strategy and offers Pricoa and Allstate an investment in a business with a strong track record and a pipeline of planned acquisitions.”