OEP’s Kite UK Bidco has tabled a recommended all-cash 295p offer for Kitwave (33% premium to the close), backed by irrevocable commitments for c.21.6% of the register. Kitwave’s FY25 interims are in line (rev £802.7m; adj. EBIT £38.0m) and management says trading remains in line. The 295p price equates to only ~10x FY26e P/E (~7x EV/EBITDA) frankly low for a cash-generative group with clear integration upside from Creed and the SW DC; we expect investor pushback. By way of precedent, Booker traded at c.21x P/E (c.13x EV/EBITDA) on take-private; even after a conservative ~30% haircut to allow for Kitwave’s smaller scale and liquidity, the precedent supports a bid nearer 390p (implied ~9x FY26e Ev/EBITDA). We recommend shareholders reject the 295p proposal and push for a higher offer; a strategic counter-bid remains a realistic upside. We lift our TP to 390p from 300p.
