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Buy-and-build wholesaler Kitwave Group has added another business to its portfolio with the acquisition of Wilds of Oldham for an undisclosed sum.

Established for more than 25 years, Wilds of Oldham is a family-run drinks wholesaler supplying the on- and off-trade.

It employs 35 staff, has a fleet of 11 vehicles delivering to customers within a 50-mile radius of its Oldham warehouse and generated revenues of £10.2m in the year ended 30 September 2022.

Kitwave said it funded the cash deal through its current banking facilities.

Wilds of Oldham will be incorporated into Kitwave’s existing foodservice on-trade business HB Clark & Co.

Kitwave CEO Paul Young said the newly acquired business would assist in the distribution of HB Clark’s alcohol and soft drinks products throughout the North West.

“Wilds of Oldham is a proven, successful business that will make a strong addition to our foodservice division,” he added.

“At Kitwave, we remain focussed on capitalising on the fragmented UK wholesale market and will continue to identify the best opportunities to deliver the most value for our stakeholders.

“We are looking forward to working closely with the Wilds of Oldham team and integrating the business into the group’s foodservice division.”

Morning update

McBride trading update

Own-label household products supplier McBride is continuing to trade ahead of expectations, according to a brief trading update issued ahead of its AGM.

It follows a trading update last month in which the group said it beat internal forecasts for the first quarter thanks to stronger-than-expected sales volumes and stable input costs.

McBride this morning said it continued to trade ahead of expectations in October and the early part of November, which the group attributed to shoppers trading down from brands to own label

For the first four months of the current financial year, overall volumes were 8.2% higher year on year, with private label volumes growing 11.7%.

“With only four months of the financial year complete, the group remains alert to the possible risk to full-year results from world events, which could lead to macro-economic instability and potential increased volatility in commodity markets and ultimately into further input cost pressures,” the statement concluded.

CCEP agrees Philippino deal

Coca-Cola Europacific Partners (CCEP) has agreed to buy Coca-Cola Beverages Philippines from The Coca-Cola Company after completing its due diligence.

Following the announcement on a potential $1.8bn (£1.4bn) deal back in August, CCEP said this morning it has now entered into a definitive agreement to acquire the Asian bottler alongside its joint venture partner Aboitiz Equity Ventures, a Philippino conglomerate.

The deal is now subject to a number of customary closing conditions, including receipt of required regulatory approvals.

Compass annual results

Compass Group has acheived double-digit boosts to revenues and profits in “a strong” year for the catering giant.

Revenues increased 18.8% to £31.3bn and operating profits rose 29.6% to £2.1bn in the year to 30 September 2023.

Compass said the sales growth was balanced across all regions and sectors.

CEO Dominic Blakemore added that North America continued “a long track record of excellent growth”, while Europe delivered a second year of net new growth in the 4-5% range.

“Going forward, we expect to sustain mid to high single-digit organic revenue growth and ongoing margin progression leading to profit growth ahead of revenue growth and increased cash generation.

“We are investing in capex and strategic M&A to support future growth, returning any surplus cash through the share buyback programme, and delivering long-term, compounding shareholder returns.”

Morning shares

The FTSE 100 opened down 0.4% to 7,474.71pts this morning.

Shares in Kitwave fell 2.7% to 247.2p on news of its latest deal, while Compass declined 4.6% to 1,995.5p and McBride jumped 5.4% to 54.7p.

Early risers included Bakkavor, up 3.5% to 89p, Virgin Wines UK, up 2.6% to 39p, and Wynnstay Group, up 1.9% to 428p.

Pets at Home, Ocado, PZ Cussons and Associated British Foods were among the fallers, down 1.5% to 309p, 1.2% to 554p, 1% to 137.2p and 0.9% to 2,359p respectively.

This week in the City

Tomorrow kicks off with first-half results from meat processor Cranswick.

Drinks supplier Britvic publishes annual results on Wednesday morning ahead of the latest Autumn Statement from the Chancellor.

PZ Cussons is scheduled to issue a trading update on Thursday ahead of its AGM.

The latest report from the closely-watched GfK consumer confidence index is out on Friday morning as the annual Black Friday discount extravaganza kicks off.