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, has exited the business following the deal.

Young, who 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, who founded the company in 1998, added.

“The new investment will allow us to develop further in some key focused areas and we are excited about delivering on our ambitious expansion targets for the future.”

Kitwave, the 15th-largest UK-based wholesaler in The Grocer Big 30, has been transformed from a regional confectionery player to a diversified, national wholesaler 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 in the process.

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.”

Kitwave will maintain its longstanding relationship with Barclays, which has supported the business since its inception, following the deal and has struck up a new partnership with Yorkshire Bank.