LONDON: Kitwave Group plc (AIM: KITW), the delivered wholesale business, has acquired the entire issued share capital of M.J. Baker Foodservice Limited (M.J.Baker), the West Country’s leading independent foodservice supplier, according to a statement.
The total gross consideration payable for the Acquisition is £24.5 million in cash and has been funded from the existing banking facilities available to the Group.
Founded in 1999 and based in Newton Abbott, Devon, M.J. Baker offers over 3,500 products in ambient, chilled and frozen foods, together with alcohol, confectionery and non-food items. The leading brands are complemented by a range of products under the Bakers Best Buy lines.
M.J. Baker reported audited turnover of £16.9 million and profit before tax of £1.5 million for the financial year ending 31 December 2020. As at 31 December 2020, M.J. Baker had net assets of £7.9 million.
The balance sheet being acquired includes c. £6 million of cash and a freehold property with a book value of c. £1 million.
The multiple being paid for the Acquisition, excluding cash and the value of the freehold, is c. 6x annual run rate EBITDA. The Board believes that the Acquisition will be immediately earnings enhancing.
The acquisition will be incorporated into Kitwave’s existing Foodservice division which currently comprises the trading operations of H.B. Clark & Co. (Successors) Limited and David Miller Frozen Foods Limited.
Commenting on the Acquisition, Paul Young, Chief Executive Officer of Kitwave, said: “The acquisition of M.J. Baker is an excellent addition to our Foosdservice division and expands the Group’s nationwide reach into the South West. M.J. Baker is renowned for providing a quality delivered solution to its customers, a key part of the Kitwave Group ethos.
“I am delighted to welcome the M.J. Baker team to Kitwave and we look forward to continuing to build our nationwide foodservice offering as part of our growth strategy.”