The announcement was included in the company’s first quarter 2019 financial results, where it reported sales growth of 1.5% in the three months to 30 June 2019.
Cranswick’s acquisition of Katsouris Brothers was funded from the meat firm’s existing debt facilities, with a further £7m offered dependent on the future performance of the business in the 14 months to 30 September 2020.
Operating from two factories in Wembley, Katsouris Brothers – which trades under the name Cypressa – processes and distributes a wide-range of traditional Mediterranean goods. Products include pasta, nuts, cereals, pulses, cheeses, olives, oils and dressings.
The company reported sales of £68m and earnings before interest, tax, depreciation and amortisation of £6m for the year ended 30 June 2019. The manufacturer has a total workforce of about 250 staff.
Former MD remains with business
Managing director Costas Constantinou and commercial director Louis Constantinou will remain with the business.
Cranswick chief executive Adam Couch said: “This acquisition strengthens our existing continental products business and broadens our offering in a number of fast-growing, plant based, non-meat product categories.
“The family behind Katsouris Brothers has created long lasting and sustained relationships with suppliers and the business has a strong customer base. We look forward to building on this and continuing to invest in the facilities and the team, over the years ahead.”
Cranswick continues investment
Cranswick said it continued to invest across the business to increase capacity and drive operating efficiency with its main project, its new poultry processing facility at Eye in Suffolk, progressing to plan. The site was reported to be the first new poultry factory in the UK for 30 years.
In May, the meat processor announced it aimed to plough £100m into processing and eco-friendly projects in the coming year, up from the £75m invested by the company in the previous financial year.
Couch added: “We have made a positive start to the year and our capital investment programme, which is building a platform for future growth, remains firmly on track.
“We continue to make pleasing progress on the new Eye poultry facility and our new continental products facility in Bury is now performing strongly and in line with the original business case.”
Meanwhile, in other acquisition news, Ice cream giant Froneri has acquired Nestlé’s ice cream business in Israel, bringing all of Nestlé’s Europe, Middle East and North Africa ice cream operations into the group.
