The deal, subject to approval from the Competition and Consumer Protection Commission (CPCC) in Ireland, was estimated to be worth up to £200M, according to reports.
CapVest said that Karro Food Group was a great fit with its overall investment strategy.
The private equity firm’s md Jason Rodrigues said: “Karro Food Group has established a leading position in the processing and sale of British pork, for which we believe the long-term fundamentals are very strong.
“We are delighted to back a very experienced and capable management team and we look forward to working closely with them in pursuing exciting new organic and acquisition-led growth opportunities.”
An industry expert told FoodManufacture.co.uk last week that reports of an impending takeover “appeared to be right”.
Commenting before the sale, announced today (March 27), the industry expert said: “I believe that [the reports] appear to be right. Karro Food Group’s earnings before interest, tax, depreciation and amortisation is reportedly £30–35M.
“It’s unclear why CapVest should think this is such a great deal when none of the national or international trade players want to buy it. Karro is trading at optimum, having had fair winds on pork prices.”
Last week, Shore Capital analyst Clive Black said the deal would see Karro transfer from one good home to another.
‘Among the most astute and effective investment groups’
“It is not unreasonable to state that Endless and CapVest are amongst the most astute and effective investment groups in the market,” Black told FoodManufacture.co.uk.
“If the deal was completed, then Karro would be transferring from one very good home to another. I think management, employees, suppliers and customers should take comfort in that.”
Karro Food Group supplies meat products to retail, foodservice and manufacturers across the UK. It processed about 45,000 pigs a week, and its pork is eaten by millions of consumers every year, it said.
The Malton, North Yorkshire-based pork firm employed about 3,000 people, Karro said.
The prospect of an imminent sale of Karro Food Group was first reported by Food Manufacture’s sister title The Grocer.
Meanwhile, Ireland-based Dawn Meats was reportedly close to sealing a deal for meat firm Dunbia. The Northern Ireland firm was “quite likely” to be sold to Dawn Meats, an industry expert told FoodManufacture.co.uk.