Karro Food Group to be sold to CapVest

The deal, subject to approval from the Competition and Consumer Protection Commission (CPCC) in Ireland, was estimated to be worth up to £200M, according to reports.

CapVest said that Karro Food Group was a great fit with its overall investment strategy.

The private equity firm’s md Jason Rodrigues said: “Karro Food Group has established a leading position in the processing and sale of British pork, for which we believe the long-term fundamentals are very strong.​

‘Acquisition-led growth’​

“We are delighted to back a very experienced and capable management team and we look forward to working closely with them in pursuing exciting new organic and acquisition-led growth opportunities.”​

An industry expert told FoodManufacture.co.uk last week that reports of an impending takeover “appeared to be right”​.

Commenting before the sale, announced today (March 27), the industry expert said: “I believe that ​[the reports] appear to be right. Karro Food Group’s earnings before interest, tax, depreciation and amortisation is reportedly £30–35M. ​

“It’s unclear why CapVest should think this is such a great deal when none of the national or international trade players want to buy it. Karro is trading at optimum, having had fair winds on pork prices.”​

Last week, Shore Capital analyst Clive Black said the deal would see Karro transfer from one good home to another.

‘Among the most astute and effective investment groups’​

“It is not unreasonable to state that Endless and CapVest are amongst the most astute and effective investment groups in the market,”​ Black told FoodManufacture.co.uk.

“If the deal was completed, then Karro would be transferring from one very good home to another. I think management, employees, suppliers and customers should take comfort in that.”​

Karro Food Group supplies meat products to retail, foodservice and manufacturers across the UK. It processed about 45,000 pigs a week, and its pork is eaten by millions of consumers every year, it said.

The Malton, North Yorkshire-based pork firm employed about 3,000 people, Karro said.

The prospect of an imminent sale of Karro Food Group was first reported by Food Manufacture’s sister title The Grocer​.

Meanwhile, Ireland-based Dawn Meats was reportedly close to sealing a deal​ for meat firm Dunbia. The Northern Ireland firm was “quite likely”​ to be sold to Dawn Meats, an industry expert told FoodManufacture.co.uk.