Cranswick announces acquisition and strong Q2 performance
29th Jul 2019 / By Alistair Driver
Cranswick has announced the £43.5 million acquisition of a Mediterranean food products business, as it continues to deliver 'encouraging' trading results.
The Hull-based pork processor revealed that a its Q2 trading figures have been boosted by high Chinese demand and UK pig prices that remained below-year earlier levels, despite steady increases.
The Group announced today that it has acquired the whole of the issued share capital of Katsouris Brothers Limited, a leading processor and multi-channel supplier of Continental and Mediterranean food products.
The business operates from two facilities in Wembley, North London and employs a total workforce of approximately 250. The current management team will remain with the business. The company had a turnover of £68 million for the year ended June 20, 2019, posting a profit of £6 million, with gross assets for the year of £30 million.
The net cash consideration of £43.5m was funded from Cranswick’s existing debt facilities. Further payments of up of £7m are dependent on the future performance of the business.
Cranswick CEO 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 has also announced that revenue in the three months to June 30 was 1.5 per cent ahead of a strong performance in the same period last year.
Far East export revenues were strongly ahead of the corresponding period last year, reflecting increased demand from China following the widespread outbreak of African Swine Fever in the region.
The UK pig price increased by 10% during the period, although the average price across the quarter to June 2019 was still below that in the equivalent period a year earlier.
The Group said it continues to invest at record levels across its asset base to increase capacity, with investment in the new £75 million poultry primary processing facility at Eye in Suffolk, progressing to plan.
Mr 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."