Karro Foods set to be bought

Karro Food Group looks set to be acquired from private equity group Endless by funds advised by fellow private equity outfit CapVest Partners.

According to the terms of the deal, the pork processing firm's management team, including executive chair Di Walker (pictured), will remain with the company, which supplies major supermarkets, wholesalers and international businesses.

In a statement, Capvest said following Karro’s acquisition from Vion in January 2013, private equity house Endless and the Karro management team had successfully boosted profits, plus national and international performance.

The deal is subject to normal closing conditions and approval from the Competition and Consumer Protection Commission (the 'CCPC') in Ireland. Details of the transaction have not been disclosed.

Jason Rodrigues, managing director of CapVest, said: “Karro is a great fit with CapVest’s overall investment strategy. The 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.

“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.”

CapVest was advised by Investec Corporate Finance (Ireland) (corporate finance), Kirkland & Ellis (legal), KPMG (financial and tax due diligence) and EY (debt advisory). Debt financing was provided by Pemberton and Lloyds Bank.

Karro Foods, which has its headquarters in Malton, north Yorkshire, processes 45,000 pigs a week and employs 3,000 people. It was the winner of the Exporter of the Year Award at Meat Trades Journal's Meat & Poultry Processing Awards 2017.

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