One Equity Partners Acquires UK Wholesaler Kitwave in £251M Deal

NEW YORK, NY – March 23, 2026 – Private equity firm One Equity Partners (“OEP”) has completed its acquisition of Kitwave Group plc, a major UK wholesale distributor, in a deal valued at approximately £251 million. The all-cash transaction, which saw Kitwave delisted from the London Stock Exchange's AIM on March 13, 2026, marks a significant strategic move aimed at accelerating consolidation within the UK's vast and fragmented food and drink supply chain.

The acquisition, conducted by OEP-owned entity Kite UK Bidco Limited, provides a substantial premium to Kitwave's shareholders and transitions the company into private ownership, a move its leadership believes will provide greater flexibility to pursue an aggressive growth strategy.

OEP's Playbook: A Bet on Consolidation

One Equity Partners, which spun out of JP Morgan in 2015, has built a reputation for executing transformative business combinations, particularly in fragmented industrial sectors. The acquisition of Kitwave fits squarely within this established playbook, which focuses on identifying solid platform companies and using them as a base for M&A-driven expansion.

“Kitwave’s operating model is centered on service reliability and local reach across the U.K., making it a compelling platform within the U.K. wholesale distribution market,” said Steve Lunau, Partner at One Equity Partners. “The Company has built a strong track record of completing and integrating acquisitions in a highly fragmented sector, and we believe this experience provides a solid foundation for future M&A‑driven growth.”

OEP's strategy has proven successful in previous distribution-focused investments. The firm's investment in PS Logistics, a U.S.-based flatbed transportation provider, saw the company's earnings double over three years, fueled by 14 strategic acquisitions. This “buy and build” approach is precisely what OEP partners envision for Kitwave, leveraging its established infrastructure to absorb smaller competitors and expand market share.

Ori Birnboim, another Partner at One Equity Partners, emphasized the core strengths that make the company an ideal investment. “In the wholesale distribution sector, service reliability and local reach are critical to serving customers effectively,” he stated. “Kitwave’s national platform, diversified supplier base and experienced management team position the Company well to benefit from continued underlying demand in its end markets.”

The Engine for Growth: Inside Kitwave's Operations

Founded in 1987 from a single confectionery wholesale business, Kitwave has grown into a national powerhouse. Its appeal to OEP stems from its robust operational scale and its proven ability to integrate smaller businesses. The company operates 37 facilities, a fleet of 650 delivery vehicles, and fulfills over 6,500 orders daily to a diverse customer base that includes independent convenience stores, restaurants, bars, and leisure outlets.

The business is structured across three key segments: Foodservice, Frozen and Chilled, and Ambient, which includes everything from candy and soft drinks to tobacco. This diversification has allowed it to serve a wide swath of the market and build resilience.

The financial terms of the acquisition underscore Kitwave's value. The 295 pence-per-share cash offer represented a 33.5% premium over the company's closing share price before the announcement. Despite a slight dip in pretax profit to £22.4 million in its latest full year—attributed to £2.4 million in restructuring costs—the company saw revenues surge 21% to £802.7 million, demonstrating strong top-line growth.

Kitwave's leadership has embraced the partnership, viewing OEP's involvement as an accelerator for its long-held ambitions. “We are pleased to partner with One Equity Partners,” said Ben Maxted, Chief Executive Officer of Kitwave. “Their experience working alongside management teams in distribution‑led businesses, together with a shared approach to long‑term growth, makes them a perfect fit for Kitwave.” Maxted has also noted that becoming a private company will afford Kitwave the financial flexibility needed to quicken the pace of its acquisition strategy.

Navigating a Complex UK Wholesale Market

The acquisition comes at a pivotal moment for the UK's £50-£60 billion wholesale food and drink sector. The market is stabilizing after the volatility of the pandemic and inflationary pressures, with modest growth of 1.2% in 2024 and a forecasted expansion to £42 billion by 2030. However, operators face a gauntlet of challenges.

Persistent inflation, high interest rates, and rising energy and labor costs are squeezing profit margins. At the same time, lingering supply chain disruptions from global events and post-Brexit protocols continue to add complexity and expense. The market is also intensely competitive, with major national players like Booker Group and Bestway Wholesale competing against a host of regional specialists.

Amid these headwinds, key consumer trends are creating new opportunities. The ongoing cost-of-living crisis has fueled demand for value-driven products, including own-label brands and price-marked packs, areas where agile wholesalers can excel. Concurrently, a growing consumer focus on health, wellness, and sustainability is driving demand for fresh, locally sourced, and plant-based options. Digitalization is another key battleground, with investment in e-commerce and AI-driven inventory management becoming critical for efficiency.

This complex environment favors well-capitalized, efficient operators capable of achieving scale. Kitwave, with its multi-temperature logistics and established regional reach, is well-positioned to navigate these trends. The backing of OEP provides the capital needed to invest in technology and, more importantly, to act as a consolidator in a market where many smaller players may be struggling.

The Path Forward: Private Ownership and Strategic Expansion

With the acquisition complete and regulatory hurdles cleared without public issue from the UK's Competition and Markets Authority, the new partnership between OEP and Kitwave is set to begin its work. The immediate focus will be on leveraging Kitwave's platform to accelerate its M&A strategy, a core component of both companies' long-term vision.

As a private entity, Kitwave will be shielded from the short-term pressures of public markets, allowing management to make long-term strategic investments in operational improvements, technology upgrades, and geographic expansion. This freedom is expected to empower the company to move more decisively in acquiring and integrating smaller, complementary businesses across the UK.

The combination of OEP's financial backing and M&A expertise with Kitwave's deep operational knowledge and market presence creates a formidable force in the UK wholesale sector. This partnership is not just a financial transaction but a strategic move designed to build a larger, more efficient, and more dominant player in the essential supply chain that feeds Britain's retailers and foodservice businesses. As the integration begins, competitors and customers alike will be watching closely to see how this new powerhouse reshapes the landscape of UK wholesale distribution.