UK flour miller Whitworths has finalized a strategic acquisition, agreeing to purchase local edible oils and fats supplier KTC Edibles Group.
This deal, which remains undisclosed in terms of financial specifics, is contingent upon the approval of the Irish competition authorities, according to a statement released by KTC’s owner, the private-equity firm Endless.
KTC operates as a vertically-integrated edible oils and fats company, delivering over 370,000 tonnes of these products across all major food channels in the UK.
As noted by Endless, KTC generates sales exceeding £500 million ($645.9 million) and provides employment to 450 individuals across five manufacturing and distribution sites located in the UK and Ireland. Notably, Endless acquired KTC in 2022.
Michael George, a director at Whitworths, expressed: “We have been impressed by the progress of the business over recent years and look forward to collaborating with [KTC CEO] Paresh Mehta and his talented management team to further advance and grow the business. This transaction is strategically advantageous and promises significant growth potential for all stakeholders involved.”
CEO Mehta described the sale to Whitworths as “the next exciting evolution in KTC history.” He added: “Their shared knowledge of building a market-leading enterprise for all stakeholders will be immensely beneficial for KTC. Moreover, this development presents exciting opportunities for our customers, given the enhanced product offerings of the combined business.”
Established in 1886, Whitworths operates ten flour mills that primarily supply food manufacturing sectors, as indicated in their statement.
According to recent accounts submitted to Companies House, the UK business register, Whitworths Holdings reported a turnover of £641.8 million for the fiscal year ending on 29 March 2024. This figure shows a decline compared to the previous year’s turnover of £702.3 million. However, their profit for this financial period rose to £20.6 million, up from £11.9 million a year earlier.
Mehta also extended his gratitude to Endless “for the support they have given the business over the last three years.”
He emphasized: “Our partnership has demonstrated the impressive outcomes that can be achieved with the right backer, especially when all key stakeholders are strategically aligned.”
Endless noted that, by collaborating with KTC’s management, the company has experienced a turnover growth exceeding £150 million while profitability has more than doubled since they acquired the business three years ago.
They highlighted significant achievements, including the appointment of key executives to support Mehta, capital investments in manufacturing, and the acquisitions of Scottish margarine supplier Cardowan and Irish edible oils distributor Trilby.
Aidan Robson, managing partner at Endless, remarked: “The combination of both businesses will create a strong platform supplying two essential ingredients to the UK food sector.”
