A Black Country supplier to the food industry has expanded with a buyout deal. Wednesbury-based KTC Edibles, which supplies edible oils to foodservice, wholesalers and food manufacturers, has acquired Scottish outfit Cardowan Creameries.
Established in 1930 as an independent family business, Glasgow-based Cardowan Creameries is a specialist margarine manufacturer, supplying more than 20,000 metric tonnes annually to manufacturers and wholesalers across the UK and internationally.
The undisclosed acquisition will take the combined turnover of the KTC Group to more than £550 million and further strengthens its value-added processing capabilities and broadens the group’s product offering.
Following the acquisition, KTC said it planned to build on the well-invested platform laid down by the Kyle family, who owns Cardowan Creameries, with continuing capital investment in the Glasgow site to further increase capacity and drive sales growth.
KTC’s chief executive Paresh Mehta said "The purchase of Cardowan by KTC is excellent news for both businesses. We are excited by the opportunities that Cardowan brings to KTC to expand our offering and to service all our customers.
"We recognise the importance of the company’s heritage and production methods that have been nurtured for almost a century and we look forward to welcoming the Cardowan team into the KTC family."
John Kyle, chairman and owner of Cardowan Creameries, added: "As a longstanding family business with a rich heritage, it was crucial to find the right home for Cardowan.
"We have found this in KTC which is an excellent cultural and business fit. This deal represents an exciting opportunity to accelerate Cardowan’s strategic growth plans and is a compelling addition to KTC."
KTC Edibles is a portfolio company of private equity house Endless following its acquisition last year.
Partner Aidan Robson said: "We are delighted to be supporting KTC with its acquisition of Cardowan and we hope this is the first of many acquisitions KTC will be undertaking over the coming years.
"Cardowan will help grow the sales and volume of the group as well as broaden the offering to all existing KTC customers."
Advisers on the deal were Eversheds Sutherland, KPMG, Interpath Advisory, PwC and Shepherd and Wedderburn.
