Hull FTSE giant Cranswick has completed the acquisition of Mediterranean food firm Katsouris Brothers for a fee which could rise to £50m.
Cranswick, one of the UK’s biggest producers of pork and sausage products, announced the deal as it released its figures for the first quarter of 2019/20.
The takeover is worth an initial £43.5m, with a further £7m set aside dependent on the performance of the business.
Katsouris Brothers operates from two facilities in Wembley, London, and employs around 250 people.
Adam Couch, CEO at 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 revealed an increase in sales in the three months to June 30, boosted by strong performance in the Far East.
Demand for pig products in China and other countries have surged on the back of the outbreak of African Swine Fever across the continent.
Cranswick’s revenue was up 1.5 per cent on the same period last year, as pig prices also rose by 10 per cent.
The FTSE food firm, headquartered in Hull, is currently investing heavily in its facilities.
Work on Cranswick’s £75m poultry processing facility in Eye, Suffolk, is “progressing to plan,” the company said.
Once commissioned in 2020, the facility will double Cranswick’s existing capacity for poultry.
The state-of-the-art factory is the first new primary poultry plant to be constructed in the UK for almost 30 years and will, when fully commissioned, be the most technologically-advanced and efficient facility in the UK industry.
Mr 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.”
Cranswick said its expectations for the current financial year remained unchanged, but it hopes to benefit from the acquisition of Katsouris Brothers.
