Crawshaw Group enters into supply chain deal with 2 Sisters Food Group

Shares in Crawshaw Group tumbled after the butcher announced it has entered into a supply chain partnership with 2 Sisters Food Group, one of Europe's largest meat and food producers.

The three year deal will see Crawshaw to buy fresh meat and other products from 2 Sisters. It will also provide immediate access to surplus fresh poultry to prevent unnecessary food waste.

Meanwhile Ranjit Boparan, chief executive of Boparan Holdings, has entered into a heads of terms agreement to invest about £5.1m for a 29.9% stake in Crawshaw, with warrants to buy a further 20.1% in the future. H has also become an advisor to the board

With the investment Crawshaw plans to restart its new store opening programme, with a focus on factory shop locations.

Crawshaw chief executive Noel Collett said: "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."

"We very much welcome the 50/50 equity split as it reflects the symbiotic nature of the partnership and aligns both our interests to achieve maximum shareholder value. The two-stage subscription including conditional warrants will allow the commercial benefit to be demonstrated as part of the process."

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. Our businesses have a significant number of opportunities to work through together in the coming weeks and months."

Shares in Crawshaw Group were down 21.82% to 23.65p at 1217 BST.