One of Gloucestershire’s most successful family firms, as well as one of the UK’s leading foodservice providers, Creed Foodservice reveals agreement to be acquired for £70m by Kitwave Wholesale Group (Kitwave).
The deal includes an initial £60m in cash, plus a further £10m over the next two years based on performance targets.
Founded in 1972, Creed's Cheltenham-headquartered family-owned business encompasses a range of customers within the leisure, hospitality, education and the care sectors.
Chris Creed, CEO of Creed Foodservice, comments: 'We have been evaluating our plans to take our business to the next stage for some time now and are delighted to be able to share our growth plans.
'Our objectives have always been to keep the Creed name, remain a member of the Country Range Group, secure the right investment and strengthen our infrastructure and capacity to secure our long-term growth and I’m pleased to say that all these goals have been achieved.'
The move will see Creed Foodservice take on the principal role within Kitwave’s Foodservice division, which includes the trading operations of David Miller Frozen Foods, Total Foodservice, M.J. Baker Foodservice and Westcountry Food Holdings.
Having grown significantly over the last 13 years through a series of acquisitions, Kitwave’s Foodservice division will see depot numbers increase to 10 (16 including the on-trade business), further establishing the business as a national distributor.
With a total customer base spanning 10,700 across education, healthcare, leisure, hospitality, business and industry, and out-of-home sectors, its annual revenues approach £275 million.
Chris Creed remains CEO of Creed Foodservice, with Philip de Ternant continuing as Chairman, who will be responsible for the strategic overview and integration into the Foodservice division.
Miles Roberts will continue to be managing director, running the day-to-day with his current directors. Philip Creed, the other family member involved in the business, will continue to support the company’s sustainability initiatives.
Ben Maxted, CEO at Kitwave Wholesale Group, said: 'Creed has an exceptional heritage and is one of the UK’s leading foodservice wholesalers, so we are delighted to have reached this agreement, which will extend our Foodservice division.
'Strategically, Creed will significantly expand our geographical presence, bridging our operations in the North and South and creating a fully integrated national delivery network. We are looking forward to working with Creed's dedicated and experienced team and excited to see our Foodservice division continue to go from strength to strength.'
Completion is expected to take place on or around Friday 27 September 2024, following settlement of the capital raising along with sale agreement conditions being met.
