Karro plans "significant M&A" after CapVest takeover

“Significant M&A” is planned at Karro Foods after the pork processor was bought by CapVest last year.

The supplier revealed its planned acquisition drive in its full-year 2017 accounts, which revealed a £112m surge in sales.

Karro’s sales for the year ended December 2017 jumped 23.9% to £585m, pushed forward by investment following CapVest’s £180m acquisition in March 2017. In the Companies House documents, the directors highlighted plans for continued “significant investment” as well as “significant M&A”.

The acquisition drive kicked off in June 2018 when Karro purchased cooked ham specialist TS Bloor & Sons for an undisclosed sum.

Despite significant cost increases, the supplier increased EBITDA by 10% to £25.3m, increasing earnings by more than £2m for the fifth consecutive year.

Pre-tax profits, however, remained flat as competitive pressures continued to weigh down on the private-label pork market.

It said it was now looking to “broaden its offering to customers” through acquisition-based growth and internal investment from CapVest.

After four years of ownership, UK-based private equity firm Endless sold Karro to CapVest, which already owned food groups United Coffee and Valeo.

“Karro Food Group is well placed to deal with the strong competitive pressures that characterise the UK pork industry and is preparing for significant further growth in the years to come,” commented executive chair Di Walker.

“Karro is confident that following its acquisition by private equity firm CapVest in 2017, the group is on track to deliver further improvement in the profitability of the business through M&A activity, revenue growth and further operational efficiencies driven by investment and management initiatives.”