Edible oils supplier KTC is broadening its product range with the acquisition of Scottish business Cardowan Creameries.
Glasgow-based Cardowan is a specialist supplier of margarine, producing more than 20,000 tonnes annually for manufacturers and wholesalers across the UK and internationally.
A family business established in 1930, Cardowan has developed specialist techniques and methods to create bakery products including cake margarine and breadfat emulsion that are vegan and RSPO certified.
“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, who are an excellent cultural and business fit,” said Cardowan chairman John Kyle.
“This deal represents an exciting opportunity to accelerate Cardowan’s strategic growth plans and is a compelling addition to KTC.”
The deal will take the combined turnover of the KTC Group to more than £550m, and KTC said it will strengthen its value-added processing capabilities and broaden its product offering.
KTC added that it plans to make continuing capital investment in the Cardowan site to increase capacity and drive sales growth.
“We are excited by the opportunities that Cardowan brings to KTC to expand our offering and to service all our customers,” said KTC chief executive Paresh Mehta.
“I would like to thank John Kyle and Lesley McGhee for their support throughout the process and congratulate them on building a world-class business. 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.”
Aidan Robson, partner at KTC owner Endless LLP added that he hoped this would be the first of many acquisitions KTC will be undertaking in the coming years.
KTC was advised by Eversheds Sutherland, KPMG and Interpath Advisory, while Cardowan was advised by PwC and Shepherd and Wedderburn.