UK flour miller Whitworths has agreed a deal to buy local edible oils and fats supplier KTC Edibles Group.
The deal, struck for an undisclosed sum, is subject to the approval of the Irish competition authorities, a statement issued by KTC owner, the private-equity firm Endless, read.
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KTC is a vertically-integrated edible oils and fats business supplying more than 370,000 tonnes of oils and fats across all major food channels in the UK.
According to Endless, KTC generates sales of more than £500m ($645.9m) and employs 450 people in five manufacturing and distribution sites in the UK and Ireland. Endless snapped up KTC in 2022.
In the statement, Whitworths director Michael George said: “We have been impressed by the progress of the business over recent years and look forward to working with [KTC CEO] Paresh Mehta and his talented management team to continue to progress and grow the business. The transaction is a great fit strategically and will deliver significant further growth potential for all stakeholders.”
Mehta said the sale to Whitworths was “the next exciting evolution in KTC history” and added: “Their shared knowledge of developing a market-leading enterprise for all stakeholders will be hugely beneficial for KTC. It is also an exciting development for our customers, given the product offering of the combined business.”
Whitworths, founded in 1886, has ten flour mills “supplies almost exclusively into food manufacturing”, the statement read.
According to accounts lodged with Companies House, the UK business register, Whitworths Holdings generated turnover of £641.8m in the year to 29 March 2024, compared to £702.3m in the previous 12 months. Profit for the financial period stood at £20.6m, versus £11.9m a year earlier.
Mehta also thanked Endless “for the support they have given the business over the last three years”.
He added: “Our partnership has shown what can be achieved with the right backer and when all key stakeholders are strategically aligned.”
Endless said that, working alongside KTC’s management, the company’s turnover has grown by over £150m and profitability more than doubled since it acquired the business three years ago.
It pointed to the appointment of executives to support Mehta, capital investment in manufacturing and the acquisitions of Scottish margarine supplier Cardowan and Irish edible-oils distributor Trilby.
Aidan Robson, managing partner at Endless, said: “The combination of both businesses will create a strong platform supplying two important ingredients to the UK food sector.”
Last month, Endless sold UK meat processor Karnova Food Group to US-based meat major OSI Group.
