Wholesaler expands with acquisition of vending machine supplier
WHOLSEALER Kitwave, which has a key operation in Shropshire, has acquired vending machine supplier Automatic Retailing in an undisclosed deal.
Kitwave, which sells tobacco, alcohol, confectionery and soft drinks, said the move would strengthen its buying power.
The company, which is based in North Shields, employs 166 staff and operates from warehouses in North Shields, Middlesbrough, Carlisle, Bradford, Bolton and Telford.
In March 2011, NVM Private Equity Ltd (NVM) invested £7.5m in the business to support its continued growth through consolidation.
The latest deal was financed through Barclays Corporate, where relationship director Ralph Edwards said: “The Kitwave business continues to perform well and is a testament to the quality of the management team and their dedication to drive the business forward from a regional business to a fully fledged national operation.
“I am delighted that we have been able to support them with this acquisition and the ongoing strategy of the business.”
Kitwave were advised by a team at Newcastle commercial law firm Muckle. Financial due-diligence was undertaken by KPMG.
Automatic Retailing operates from its distribution centre in Cramlington, Northumberland. The company has grown significantly over the past three years, investing heavily in its distribution centre and fleet.
Paul Young, group managing director of Kitwave, said: “We maintain strong, long-term relationships with our independent retail and wholesale customers – which is vital to the success of our business.
“The acquisition of Automatic will help us to broaden our loyal customer base; and to partner with a solid business operating in a growing sector of the market.”
NVM Director, Mauro Biagioni, who works alongside the Kitwave management team, said: “Since we invested in Kitwave six months ago, Paul and the team have wasted no time seeking out acquisitions in their market place.
“The company has historically succeeded by acquiring businesses with a similar product range and customer base, but never lost sight of the importance of offering a local and personal service to its customers. Kitwave is an exciting business to be a part of right now.”
