Crawshaw Group, the butcher and food-to-go retailer, has announced it has entered into a supply chain partnership with 2 Sisters Food Group and has signed heads of terms under which Ranjit Boparan is expected to become a significant shareholder in the Group.
The deal is subject to shareholder and Takeover Panel approvals and definitive agreements being entered into.
The firm said Boparan would invest approximately £5.1m for a 29.9% stake in Crawshaw, with warrants to acquire a further 20.1% of the Group, and would also become an advisor to the Board.
According to Crawshaw Group, the deal will involve:
• Immediate access to increased volumes of ongoing continuity and surplus fresh poultry, which provides further surety of supply to complement the scalable spot-market buying model.
• Crawshaw to use its unique vertically integrated capability to take supply of quality fresh meat, poultry and other grocery products from the supply/demand imbalances, which prevents creation of unnecessary food waste.
• An initial three-year Supply Agreement for Crawshaw to acquire fresh meat and other products from 2 Sisters.
• Crawshaw customers to benefit from expanded range at competitive prices.