Listed food producer acquires £68m turnover business

Hull-based food company Cranswick has bought Katsouris Brothers, a Mediterranean food products business which employs about 250 people.

The Yorkshire firm announced the acquisition today as part of its trading update for the first quarter.

For the year ended 30 June 2019, revenue for Katsouris Brothers was £68m and adjusted EBITDA was £6m. The net cash consideration of £43.5m for the acquisition was funded from Cranswick’s existing debt facilities.

Katsouris Brothers is a processor and multi-channel supplier of continental and Mediterranean food products, which operates from two bases in Wembley, North London. Costas and Louis Constantinou, Managing Director and Commercial Director respectively, will remain with the business.

Adam Couch, CEO of Cranswick, said: “I am delighted to announce the acquisition of Katsouris Brothers, a leading supplier of Continental and Mediterranean food products.

“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.”

Cranswick said its own trading for the first quarter of the financial year had been “encouraging”.

Revenue for the business in the three months to 30 June 2019 was 1.5% ahead of strong comparatives in the same period last year.

Far East export revenues were strongly ahead of the corresponding period last year, reflecting increased demand from China following the widespread outbreak of African Swine Fever in the region.

The UK pig price increased by 10 per cent during the period although the average price across the quarter to June 2019 was still below that in the equivalent period a year earlier.

The company said investment in its new £75m poultry primary processing facility at Eye in Suffolk, will more than double its existing capacity and is progressing to plan.

Commissioning is expected to take place towards the end of the financial year and is being fast-tracked to support the anchor customer for the new site – Wm Morrison Supermarkets. 

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.”