“The funding package from GE Capital and RBS Invoice Finance will increase our financial fire power and inject further momentum into our expansion and acquisition plans both in the UK and internationally,” said Di Walker, executive chair of pork supplier Karro, commenting on the package.
“Over the last few years Karro has transformed from an internally operationally focused business to one that is now focused on future growth.
“This will be further evidenced by our latest accounts, to be announced over the coming weeks, which are set to show a significant underlying improvement in the profitability of the business.”
£10M investment programme
The funding package would enable it to build on its recently announced £10M capital investment programme to support its UK and international expansion strategy, the company said.
Over the past two years, Karro has seen its profitability increase by more than £20M and work has begun on an £8M investment at its largest facility in Northern Ireland.
GE Capital first forged a financial partnership with Karro in 2013 and portfolio director Craig Johnson said he was “delighted” with the firm’s progress since then.
‘M&A growth strategy’
Andy Pickford, corporate business development director at RBS Invoice Finance, said the Karro deal “will help it deliver on its organic and M&A [mergers and acquisitions] growth strategy”.
EY Capital and Debt Advisory, led by Chris Lowe and Robert Jones, advised Karro on the deal.
Karro boasts an annual turnover of £533M. The privately-owned company supplies fresh pork and cured, cooked and frozen meats to retail, foodservice and manufacturing customers.
Its headquarters are in Malton, North Yorkshire, it employs about 3,000 people across the UK and has nine divisions in England, Scotland, Northern Ireland and Ireland.