Recapitalisation & Growth Capital

PRICOA PROVIDES FINANCING TO SUPPORT GROWTH

Kitwave Wholesale Group, headquartered in North Shields, is a consolidation platform operating in the UK wholesale distribution market. The company delivers impulse food and drink, such as confectionery, crisps and ice cream, to more than 20,000 independent customers.

In March 2016, Pricoa Capital Group led a junior capital financing to support a recapitalisation of Kitwave. The transaction allowed management to avoid a control sale and continue executing their well-defined acquisition strategy while benefitting from increased common equity ownership. It also provided full liquidity for an exiting institutional investor.

Pricoa was chosen as the lead financing partner due to its relationship approach and ability to structure a bespoke transaction. The patient, long-term nature of junior capital and Pricoa’s follow-on appetite are supportive of management’s growth ambitions, as they look to execute an acquisition-led strategy in adjacent wholesale markets.

The transaction is comprised of £49.0 million of senior debt, £18.5 million of subordinated notes and £7.0 million of preferred equity. Senior debt, including working capital facilities, was provided jointly by Barclays Bank and Yorkshire Bank. In addition, the transaction includes £20.0 million of accordion facilities split equally between the providers of senior debt and junior capital to fund the acquisitions. 

Advisors to the transaction included KPMG Capital Advisory, Muckle LLP, Eversheds LLP and Liberty Corporate Finance.