Crawshaw Group enters partnership with 2 Sisters
Ranjit Singh Boparan is expected to become a “significant shareholder” in Crawshaw Group plc following the launch of a “transformational supply chain partnership” between the company and 2 Sisters Food Group.
Ranjit Singh.
The initial three-year supply agreement allows Crawshaw to acquire fresh meat and other products from 2 Sisters and, according to reports, 2 Sisters CEO Boparan is expected to invest approximately £5.1 million to acquire a 29.9% stake in Crawshaw, along with warrants to take over a further 20.1% of the group.
He is also expected to act as advisor to the board, with a “particular focus on unlocking the corporate social responsibility benefits from integrating the supply chains of the two businesses”.
In addition, Boparan Private Office (BPO)-controlled vehicle, Invest Co 1 Limited, and BPO’s chief financial officer, Stephen Henderson, are expected to acquire a 29.9% of stakes in Crawshaw for £5.1 million, or an aggregate of 33,794,490 new shares, subject to Crawshaw shareholder and TakeoverPanel approvals. Upon approval, Invest Co 1 Limited will reportedly hold 33,549,490 ordinary shares and Henderson will acquire 200,000 ordinary shares.
Following the initial investment, the company expects to “restart its accelerated new store opening programme, with an initial focus on factory shop locations”.
Crawshaw Group CEO, Noel Collet, noted: “This is a transformational partnership for the Crawshaw Group with a significant opportunity to offer a greater range and better availability to our customers. This new relationship provides a catalyst to our accelerated growth, both in sales and profitability.”
Boparan added: “This is a great opportunity that complements our corporate social responsibility policy and our aim to reduce levels of quality food that would otherwise go to waste.”
Along with news of the partnership, Crawshaw also announced that non-executive chairman, Richard Rose, will stand down after the group’s AGM on 28th June this year. He will be replaced by James John McCarthy, who will join the board immediately as a non-executive director and chairman-elect, following his “more than forty years of retail experience”.
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