Kitwave Group – OEP makes 295p a share cash bid for this wholesaling business looks like a ‘done deal’ but is it enough?

Mark Watson-Mitchell – 22.01.2026

This morning Kite UK Bidco Limited has announced a recommended cash acquisition of Kitwave Group (LON:KITW) for 295p per share, valuing the company at approximately £251m.

This offer represents a premium of 33.5% to the closing price on the last practicable date and 38.8% to the three-month volume-weighted average price.

The acquisition, to be implemented via a scheme of arrangement, is supported by the Kitwave Directors, who intend to recommend it to shareholders.

Significant shareholders, including directors and other investors, have provided irrevocable undertakings and letters of intent representing approximately 21.6% of Kitwave's issued share capital.

The transaction is expected to be completed in the first quarter of 2026.

The Business 

Established way back in 1987, following the acquisition of a single-site confectionery wholesale business based in North Shields, Kitwave is a delivered wholesale business, specialising in selling and delivering impulse products, frozen, chilled and fresh foods, alcohol, groceries and tobacco to approximately 46,000, mainly independent, customers. 

The enlarged group has a network of 37 depots, enabling it to support delivery throughout the UK to its diverse customer base, which includes independent convenience retailers, leisure outlets, vending machine operators, foodservice providers and other wholesalers, as well as leading national retailers, while also offering wholesale commercial catering supplies.  

The company specialises in selling impulse products, frozen, chilled, and fresh foods, alcohol, and groceries.  

Its segments include Ambient, Frozen and Chilled, and Foodservice.  

The Ambient segment provides delivered wholesale of ambient food, drink, and tobacco products.  

The Frozen and Chilled segment provides delivered wholesale of frozen and chilled food products.  

The Foodservice segment provides delivered wholesale of alcohol, frozen, chilled, and fresh food to trade customers.  

The group’s product range includes branded lines, branded drinks, crisps and snacks, beers and wines, bottled waters, weigh outs, and tobacco, while specialising in the supply of ice cream, ice lollies, and convenience frozen food, as well as carrying a core range of branded beers and wines. 

Kitwave’s growth to date has been achieved both organically and through a strategy of acquiring smaller, predominantly family-owned, complementary businesses in the fragmented UK grocery and foodservice wholesale market. 

The Bidder

Founded in 2001 and spun out of JP Morgan in 2015, OEP is a middle market private equity firm focused on the industrial, healthcare, and technology sectors.

With offices in New York, Chicago, Frankfurt and Amsterdam, it has completed over 400 transactions and seeks to build market-leading companies by identifying and executing transformative business combinations.

The firm prides itself on being a trusted partner with a differentiated investment process, a broad and senior team, and an established track record generating long-term value for its partners.

The bidder has extensive experience investing in the wholesale distribution sector and in executing buy-and-build strategies.

The team has a demonstrated track record of transforming distribution businesses.

This expertise is evidenced by investments in USCO, PGW Auto Glass, and Wheeler Fleet Solutions.

OEP believes that the acquisition of Kitwave represents a compelling opportunity to support and accelerate the growth of one of the UK's leading delivered wholesale groups.

Management Comment

Commenting on the Acquisition, Ben Maxted, Chief Executive Officer of Kitwave, said:

"Since becoming a public company in 2021, Kitwave has rapidly transformed from a regional foodservice operator into an enlarged UK-wide delivered wholesale business.

OEP has an excellent track record of helping businesses like Kitwave to significantly scale and the Board believes that becoming a private company will provide greater financial flexibility to achieve its ambitions.

We are excited by the prospect of working with OEP on the next chapter of our growth.”

My View

I do not think that OEP is offering enough for Kitwave’s shares, which closed at 219p last night.