Food group sizzles with £72m-turnover acquisition

ACQUISITIVE fresh food producer Cranswick has acquired a £72m-turnover pork processing business.

Northern Irish business Dunbia Ballymena, which employs 360 staff, has been bought for cash.

Based in Co. Antrim, it was founded in the 1970’s as a Co. Tyrone butcher’s shop and now processes around 7,800 UK farm assured pigs every week.

For the year to 29 March 2016 revenues reached £72.4m, down from £79m the year before which it said was down to reduced prices of livestock. It operates from a purpose-built facility with strong links to the local farming community.

Jack Dobson, executive director of Dunbia Limited, will remain in a consultant position at Ballymena for the transition.

The transaction will be funded from Cranswick’s existing debt facilities. It is expected to be earnings neutral in the current financial year and start generating income for the group in 2018.

Cranswick said the acquisition enhances the group’s pig processing capability and establishes a significant presence in Northern Ireland.

Hull-based Cranswick has been making large strategic disposals and acquisitions this year. In July 2016 it offloaded its sandwich business Warwickshire-based Sandwich Factory in a £15m deal, and in April acquired poultry business Crown for £40m.

Adam Couch, chief executive of Cranswick, commented: “I am delighted to announce the acquisition of Dunbia’s Ballymena pork processing business.

“This acquisition strengthens our UK pork processing business and provides us with greater control over our supply chain, ensuring that we can maintain the production and processing of high quality, UK farm assured, pigs which is central to our customer’s requirements.

“The management at Ballymena have created long lasting and sustained supply chain relationships and we look forward to building on this and continuing to invest in the facilities, and the team, over the years ahead.

“We welcome Jack and the team at Ballymena to Cranswick and look forward to working with them to develop the business further.”