LONDON (ShareCast) - (Sharecast News) - Wholesale business Kitwave Group has acquired West Country independent foodservice supplier MJ Baker Foodservice for £24.5m in cash, funded from existing banking facilities.
Kitwave said on Friday that MJ Baker, which offers over 3,500 products in ambient, chilled and frozen foods, will be incorporated into its existing foodservice division, which currently comprises the trading operations of HB Clark & Co and David Miller Frozen Foods.

The AIM-listed group added that MJ Baker reported an audited turnover of £16.9m and pre-tax profits of £1.5m in 2020. The balance sheet being acquired includes roughly £6.0m in cash and a freehold property with a book value of approximately £1.0m.

Kitwave believes that the acquisition will be immediately earnings enhancing.

Chief executive Paul Young said: "The acquisition of MJ Baker is an excellent addition to our foodservice division and expands the group's nationwide reach into the South West.

"I am delighted to welcome the MJ Baker team to Kitwave and we look forward to continuing to build our nationwide foodservice offering as part of our growth strategy."

As of 1040 GMT, Kitwave shares were up 4.32% at 139.0p.

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