UK pork firm Karro Food Group plans to use an injection of capital from investment firm GE Capital to support growth in the UK and overseas.
The company, which supplies retailers including Tesco and Sainsbury’s, said a new GBP60m (US$91.2m) funding package from GE Capital would provide it with the “fire power” to invest in the business and accelerate growth.
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“From a very strong asset base and a stable financial platform, the new GE facility will give us the fire power to invest further in the business, react more rapidly to opportunities and grow our market share, not only here in the UK but also overseas,” Karro chief executive Seamus Carr said.
The company was formed after Vion’s UK pork assets were sold in an MBO backed by private-equity group Endless six months ago. Since then, it has undertaken a “major programme of reorganisation”, with a strengthened management team and cost cutting drive. The company has also been working to win new contracts and grow sales despite the tough economic backdrop.
“We remain on a drive for continued improvement by bearing down on costs and by working more closely with our farmers to drive value and quality all the way through the supply chain. At the same time, we are focusing on the needs of our customers, adopting a more flexible and entrepreneurial culture and investing in our product offering to build upon our strong market position,” Carr said.
Last week, Karro said it was looking at cutting slaughter and butchery operations at its Wiveliscombe facility in Somerset, putting 113 jobs at risk.
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By GlobalDataGE Capital commercial leader Stephan Caron said the investment vehicle was “delighted” to be partnering with Karro and Endless. “[We] look forward to working closely with the management team to provide the right support to help them achieve their growth objectives,” he said.
