North Shields-based “delivered wholesale” business Kitwave Group plc has agreed to acquire Creed Catering Supplies Limited, a food wholesaler in the South of England with a range of customers in the leisure, hospitality, education and the care sectors.​

“The initial consideration payable for the acquisition is £60.0 million in cash, with up to a further £10.0 million in cash payable over two years dependent on certain performance targets being achieved,” said Kitwave.

The North Shields firm also said it raised £31.5 million from a capital raising, with a placing and retail offer of shares “both significantly oversubscribed with strong support from new and existing shareholders.”

Kitwave shares rose as much as 9% to around £3.35 to give the firm a stock market value of around £235 million.

Kitwave joined the stock market in May 2021 at about £1.50 a share.

Kitwave CEO Ben Maxted 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.

“In line with our buy and build strategy, Creed is also expected to significantly enhance the Group’s earnings along with providing material buying, operational and financial​ synergies.

“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.”