Private equity group CapVest is nearing a deal to acquire UK pork processor Karro Food Group, just-food understands.
Karro, owned by investment firm Endless, supplies pork products to retail, foodservice and manufacturing customers. The business operates pork farms and processing operations in the UK.
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The company’s primary market is the UK, with some international sales in countries including the US and China. Karro produces own-label pork products for retailers, as well as branded fresh pork products. The group’s brands include Case & Sons, Key Country Foods and Cookstown.
Karro has improved its profitability over recent years and, thanks to a turnaround programme and higher global pork prices, it is believed Karro generated EBITDA of GBP30-35m last year. This compares to EBITDA of GBP8m for 2014 and an EBITDA loss of GBP3m in 2013.
Last January, Karro stepped up production levels, investing GBP2m (US$2.5m) in its production site in Scunthorpe ahead of what it said would be a “significant increase in sales”.
Spokespeople for CapVest, Karro and Endless declined to comment on the possible deal when approached by just-food for confirmation.
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