Investor scoops 3x return with wholesaler exit

INVESTOR NVM Private Equity has exited from Kitwave Wholesale Group in a deal thought to be worth more than £20m.

In March 2011, NVM invested £7.5m in the business to support its continued growth through consolidation.

Kitwave, which sells tobacco, alcohol, confectionery and soft drinks, is based in North Shields and also operates from warehouses in  Bolton, Carlisle, the North East, Bradford, and Telford.

NVM said the wholesaler had transformed itself from being a regional confectionery business to a national wholesaler through 11 acquisitions since 2006.

The exit represents a gross money multiple of 3.0 times NVM’s original investment.

In 2014 Kitwave broke into The Sunday Times ‘Top Track 250’ and was invited to join the London Stock Exchange ‘Elite’ scheme for fast growing companies. More recently the group has entered the prestigious Grocer’s ‘Big 30’ ranking for the first time as the 15th largest UK based wholesaler.

Paul Young, CEO of Kitwave said: “This deal marks the start of the next chapter of our growth story, which sees revenues on track to reach in excess of £260m in the current financial year.  During the last five years, NVM has been a major support and the capital and faith in our strategic vision has continuously helped to ensure we have developed an attractive platform to continue to grow.”

Mauro Biagioni of NVM Private Equity said: “Kitwave has been a very successful investment for NVM and its funds and is now well positioned for its next phase of growth.  It has been a pleasure working with Paul, David and the wider management team, and we wish them every success for the future.”

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