Pork firm Karro Food Group agrees £60M funding deal

The £540M business – formed after the management buyout of part of Vion UK’s food business – was acquired by private equity firm Endless six months ago. The funding deal follows reorganisation of its business and the appointment of Brian Stein​, former Samworth Brothers ceo, as a non-executive director.

The business was continuing to improve efficiencies across its operations and to win new sales volume, despite the tough economic climate, it claimed.

‘The fire power to invest’​

Seamus Carr, chief executive of Karro Food, said the funding deal was excellent news for the firm’s employees, farmers and customers. “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,”​ he said.

Karro would continue to focus on cutting costs and to improve value and quality throughout the supply chain by working more closely with farmers, said Carr.

It would also focus on the needs of customers, adopt a more flexible and entrepreneurial culture and invest in its product offering, he added.

Aidan Robson, Endless investment director, said: “We are delighted to bring GE Capital into our partnership with Karro. The refinancing is a fantastic endorsement of the company and the outstanding progress that has been made in the first six months of our investment. As the demand for high-quality UK pork increases, Karro is fantastically positioned to support both its retail and trade customers in their long-term growth ambitions.”​

Retail and trade customers​

Stephan Caron, commercial leader, GE Capital UK, said the finance deal would strengthen its position as a leading player in the UK food market.

“We’re delighted to be partnering with the company at such an exciting stage in its development and look forward to working closely with the management team to provide the right support to help them achieve their growth objectives,”​ said Caron.

Meanwhile, last week, Karro unveiled plans to cut 113 jobs with the closure of slaughter and butchery operations at its Wiveliscombe site​ in Somerset.

Carr said the site lacked the necessary scale to operate profitably. “So, we must propose this change in order to ensure our continued viability and growth, and safeguard other jobs across our business,”​ he said.

Karro supplies fresh pork, and cured and cooked meats, to retail, foodservice and manufacturing customers. Leading customers include: Tesco, Sainsbury, Coop and Aldi.

Based in Malton, North Yorkshire, the business employs about 3,500 people across the UK and has nine divisions in England, Scotland and Northern Ireland. 

The firm also operates pig breeding and rearing farms in the north of Scotland where it rears 3,500 outdoor bred Freedom Food pigs a week.