Karro Food Group
Non-Core Acquisition / Management Buyout
Headquartered in Malton, North Yorkshire, Karro Food Group is one of the leading suppliers of pork products into the retail and foodservice market. With a workforce of over 3,100 people and with turnover in excess of £550 million, Karro operates from six sites across England, Scotland and Northern Ireland. Its reputation for high welfare pork produce was forged through its commitment to breeding its own pigs at its farm in Brydock, Scotland as well as sourcing from farmers local to its various operations.
Endless acquired Karro in January 2013 from Vion Food Group. Endless’ reputation for delivering complex transactions quickly, simply and without the need for third party debt provided the parent company with the exit solution it was looking for. Despite tough economic and market conditions at that time combined with increasing raw material prices, Endless committed significant funds and resource to support the management team to transition Karro into a stronger, standalone and agile pork business.
During our period of ownership we supported the investment of over £45m in automation and capacity improvement projects. The business now has a blue chip customer base in the UK focused on British Pork, an established antibiotic free export business to the USA, as well as increasing export sales to China.
Karro is now established as a key strategic player in the sector and through operational and commercial focus has delivered EBITDA run-rate improvements of over £40 million per annum compared to the position at acquisition. This continuing success has brought security to the workforce, suppliers and customers and created the confidence for key stakeholders to grow long-term strategic partnerships with the business.
In May 2017 we were very pleased to announce the sale of Karro to CapVest Partners LLP and wish the business and its management team all the best for the future. At the time, this delivered the largest value investment return in our history.
At exit, Di Walker, Executive Chair, said:
“Endless has been a great owner of Karro and I would like to thank them for all the support and input over the last four years. This has helped us transform and grow Karro into the highly successful business it is today, with a clear strategic role in the supply of British pork.
Along with our new owners, CapVest, we have ambitious plans to grow the business further and we are very excited about the scale of the future opportunities. In the meantime it’s very much business as usual for our management, employees and customers as we look with confidence to the next phase in our journey.”