The transaction includes the acquisition of 27 operating locations including the majority of Crosstown’s stores, market units, kiosks, concessions, and trucks.
It will also see the transfer of 140 staff including the leadership team, with CEO Howard Ebison set to continue leading the Crosstown business.
The terms of the deal have not been disclosed.
“We’re delighted to start the next chapter for Crosstown,” says Ebison.
“Since we launched 10 years ago, the fantastic team has created a completely unique proposition in bakery. Crosstown has become a destination for food and flavour, both in store and online.
“The Karali Group brings a wealth of experience and an exceptional track record growing hospitality brands. Their investment is testament to the strength of the Crosstown brand, the commitment of our teams and the loyalty of our customers.”
Crosstown, which was founded by Adam Wills and JP Then back in 2014, has been working with advisers from Interpath Advisory to explore investment options that could support its continued operations and future expansion.
“The team at Crosstown has a great concept that has gained an enviable foothold in the market,” says Sam Birchall, head of Special Situations M&A at Interpath Advisory.
“This transaction will enable the team to build upon its network of retail outlets with the investment and support of Karali Snacks. We wish the team all the best for the future.”
Karali Group, which is led by Salim Janmohamed and Karim Janmohamed, is a diversified, multi-national hospitality and real estate platform operating franchises in the fast-food, casual dining and hospitality sectors.
It was previously the largest independent UK Burger King franchisee, operating 74 sites. However, it exited the portfolio in 2022.
“We are delighted to get this transaction over the line and are excited about the opportunity to work with the Crosstown team on further developing and enhancing this fantastic brand and offering,” says Janmohamed.
“The Crosstown brand is synonymous with excellence, innovation and quality in the bakery sector, and we were immediately attracted to the chance to invest and propel the business forward.
“Karali Snacks, a division of the Karali Group, will manage the investment in Crosstown as the Karali Group furthers its investment strategy across the retail, consumer, leisure and real estate spaces.”
Freeths advised Karali Group on the acquisition. The legal team was led by national head of commercial Iain Bowler, and restructuring and insolvency director Miles Hacking. They were supported by a multi-disciplinary team including real estate partner Lucy Bradban.
