A NORTH East private equity house has invested £7.5m in a regional business to help it continue its nationwide expansion.

Kitwave, which trades as M&M Value from its headquarters in North Shields, is one of the region’s fastest growing companies having increased its turnover from £15m to over £100m since 2006.

Newcastle-based NVM Private Equity Limited (NVM) has invested £7.5m development capital to support its strategy to continue growth in the cash and carry sector.

Mauro Biagioni, of NVM, who led the investment and will join the board, said: “Kitwave maintains strong, long-term relationships with its customers and its unique local service offers customers a feeling of being more than just an account number.

“Management’s future vision is based on a successful track record of acquisitions and we are delighted to be able to support this.”

Rod Wilkinson of KPMG Newcastle introduced the business to NVM, he said: “We are delighted to have advised an existing client on what represents a significant strategic step.

“It is fantastic news that a North East business has been primed for significant growth by a private equity investor based in the North East!”

Paul Young, Kitwave group managing director, said: “Further consolidation will be the key to Kitwave’s success. Our company’s policy is to empower the local management teams of acquired businesses with the added security of being part of a larger group.

“The new investment will fund further acquisitions as part of the strategic development of the group. NVM has proved to be a flexible and supportive investment partner from the outset and we look forward to working with Mauro and NVM.”

NVM was advised by Charles Reynard and James Bryce of Eversheds and Mark Webster and Ian Craggs of PricewaterhouseCoopers.

Kitwave was advised by Rod Wilkinson and Michael Downes of KPMG corporate finance and Chris Barnes, Jodie Barwick-Bell and Michelle Wilson of KPMG tax.

Matt Collen and Anthony Evans of Sintons, Newcastle provided the legal advice.