A Scottish margarine firm has been bought by a West Midlands food industry supplier.
KTC Edibles, which supplies edible oils to foodservice, wholesalers and food manufacturers, has acquired Cardowan Creameries.
Glasgow-based Cardowan Creameries was founded in 1930 as an independent family business. Today the a specialist margarine manufacturer supplies more than 20,000 metric tonnes annually to manufacturers and wholesalers across the UK and internationally.
The deal, whose value has not been disclosed, will take the combined turnover of the KTC Group to more than £550m and and broadens its product offering.
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KTC says it plans to build on the 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.
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’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."
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.
