Acquisition of leading Mediterranean Foods Business
The Group announces today that it has acquired the whole of the issued share capital of Katsouris Brothers Limited. Katsouris Brothers is a leading processor and multi-channel supplier of Continental and Mediterranean food products.
The business operates from two facilities in Wembley, North London and employs a total workforce of approximately 250. Costas and Louis Constantinou, Managing Director and Commercial Director respectively, who have a wealth of experience in this attractive and fast-growing sector, will remain with the business. We welcome Costas, Louis and their team to Cranswick and look forward to working with them to develop the business further.
For the year ended 30 June 2019 (unaudited), revenue for Katsouris Brothers was £68 million and adjusted EBITDA was £6 million. Gross assets at 30 June 2019 were £30 million. The transaction is expected to be modestly earnings enhancing in the current financial year. The net cash consideration of £43.5 million was funded from Cranswick’s existing debt facilities. Further deferred contingent consideration of up to £7.0 million in cash may become payable dependent on the future performance of the business in the 14 month period to 30 September 2020.
Adam Couch, CEO of Cranswick, commented: “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. “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.”