Alongside a first quarter trading update, Cranswick revealed that it has acquired Katsouris Brothers in a deal worth £43.5m.
Katsouris Brothers is a processor and multi-channel supplier of Continental and Mediterranean food products, operating from two facilities in Wembley, North London. Costas and Louis Constantinou, Managing Director and Commercial Director respectively, will remain with the business.
The company reported revenue of £68m and adjusted EBITDA of £6m for the year ended 30 June 2019.
Adam Couch, CEO of Cranswick, commented: “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.”
Meanwhile, Cranswick, which supplies meat to the major supermarket chains, stated that trading in its first quarter to 30 June had been “encouraging”.
However, revenue was up just 1.5%, with the group blaming tough comparatives with a strong period last year.
It highlighted that Far East export revenues were strongly ahead of last year, reflecting increased demand from China following the widespread outbreak of African Swine Fever in the region.
Cranswick added that progress had also been made on its £75m poultry primary processing facility at Eye in Suffolk, with commissioning expected to take place towards the end of the financial year.
The facility will be the first of its kind constructed in the UK for almost 30 years and will be the most advanced and efficient in the country. The group recently revealed that it had secured a major long-term agreement with Morrisons to supply it with fresh poultry from the new Eye site.
Couch said: “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.”
