Kitwave Group valued at £105 million in plan to float on AIM

Kitwave Group plans to join AIM, the junior market of the London Stock Exchange, on 24 May, in a move that will value the company at £105 million.

Kitwave CEO Paul Young (right) and chief finance officer David Brind.

Founded in 1987 following the acquisition of a single-site confectionery wholesale business in Tyne and Wear, Kitwave today has a network of 26 depots and offers a range of around 33,000 mainly impulse lines to 38,000 customers throughout the UK.

By floating on AIM (Alternative Investment Market), the delivered wholesaler will raise £64 million through the placing of new shares at 150p each. Existing shareholders will sell stock worth £17.6 million.

“We are delighted with the strong support shown by our new investors, which we view as a highly positive endorsement of Kitwave’s strategy to grow,” said chief executive officer Paul Young.

“To date, we have executed a highly successful buy-and-build strategy, having acquired and integrated 10 wholesale distributors into the group since 2011, and we are confident that trading on AIM will enable us to continue to support this strategy.

“Furthermore, the directors believe that admission [to AIM] will enhance the profile of the group and its brands, improve Kitwave’s position with key suppliers, strengthen the group’s balance sheet, and provide the group with greater ability to incentivise and retain key employees going forward.”

Kitwave has around 1,100 employees. On admission to AIM, the directors and senior management of the company will own approximately 22.3% of the ordinary shares.

Young added that Kitwave has worked hard to build its reputation as a ‘trusted brand ambassador’ and provide excellent levels of service. “We are confident that admission to AIM will enable us to further improve our services to existing and prospective customers across the UK and globally,” he said.

In the 12 months to 30 April 2020, the company’s revenue was £399 million. It posted adjusted earnings before interest, tax, depreciation and amortisation of £17.5 million. The company plans to use the proceeds of the placing to reduce its existing debt, as well as fuel its growth strategy.

Tel: Kitwave 0191-259 2277