London Stock Exchange welcomes Kitwave Group plc to AIM
London Stock Exchange today welcomes Kitwave Group plc to AIM under the ticker “KITW”, after it raised gross proceeds of £64.0m for the Company and a further £17.6m for the Selling Shareholders. The Placing Price was 150 pence per share resulting in a market capitalisation of £105m at Admission.
Founded in 1987, following the acquisition of a single-site confectionery wholesale business based in North Shields, United Kingdom, Kitwave is an independent, delivered wholesale business, specialising in selling and delivering impulse products, frozen and chilled foods, alcohol, groceries and tobacco to approximately 38,000, mainly independent, customers.
Kitwave has a highly successful acquisition strategy, having acquired and integrated 10 wholesale distributors into the Group since 2011. The Group intends to continue its growth both organically and through a strategy of acquiring smaller, predominantly family owned, complementary businesses in the fragmented UK Grocery and Foodservice Wholesale market.
The Board believes that trading on AIM will support its successful buy-and-build strategy, 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.
The Company intends to use the gross proceeds of the Placing to reduce the Group’s existing debt and to pay the Group’s expenses in connection with the Placing.
Paul Young, Chief Executive Officer of Kitwave, commented:
“We are delighted to announce Kitwave’s successful admission to AIM. It represents an important milestone for the Group and supports our strategy to capitalise on future growth opportunities within the highly fragmented UK Grocery and Foodservice Wholesale market.
“With the considerable experience across our Board and Senior Management team, we strongly believe that we are well placed to generate shareholder value.
“I would like to welcome our new investors and look forward to updating them as well as the wider market as we continue to execute our strategic plans for the business."
Advisers to the Company
Canaccord Genuity Limited - Nominated Adviser and Sole Broker
KPMG LLP – Auditors and Reporting Accountants
Muckle LLP – Solicitors
Yellow Jersey PR – Financial PR
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