Cranswick PLC Acquisition of leading integrated poultry business (7153U)
April 11 2016 - 2:00AM
UK Regulatory
TIDMCWK
RNS Number : 7153U
Cranswick PLC
11 April 2016
11 April 2016
Cranswick plc
("Cranswick" or "the Company" or "the Group")
Acquisition of leading integrated poultry business
Cranswick, the UK food producer, announces today that it has
acquired the whole of the issued share capital of CCL Holdings
Limited ("Crown") and its 100% owned subsidiary Crown Chicken
Limited from the Thacker family and management. The cash
consideration was GBP40 million, funded from existing bank
facilities.
Crown is a leading integrated poultry producer based in East
Anglia. It breeds, rears and processes fresh chicken for supply
into a broad customer base across grocery retail, food service,
wholesale and manufacturing channels. Crown also has a well
invested and efficient milling operation which satisfies all of the
business' own feed requirements as well as supplying feed to other
pig and poultry producers in East Anglia.
For the year ended 31 December 2015, revenue for Crown was
GBP83.8 million and adjusted EBITDA was GBP6.6 million. Adjusted
gross assets of Crown at 31 December 2015 were GBP28.4 million.
Crown employs a total work force of approximately 400 across its
operations. The transaction is expected to be modestly earnings
enhancing in the current financial year.
Nigel Armes (Mill Director) and Matthew Ward (Agricultural
Director) will remain with the business and we welcome Nigel,
Matthew and their team to Cranswick and look forward to working
with them to develop the business further.
David Thacker, the current Chairman of Crown, retires from the
business and we offer David and his family our very best wishes for
the future.
Adam Couch, Chief Executive Officer of Cranswick commented:
"Crown is a well-respected operator in the UK poultry sector and
represents an excellent opportunity for Cranswick to continue the
development of its UK poultry business, building on the highly
successful acquisition of Benson Park, the market leading producer
of premium cooked poultry, in October 2014. This acquisition
represents important progress in our long term growth strategy of
developing new product channels in both pork and other
proteins."
Enquiries:
Cranswick plc +44 (0)1482 372 000
----------------------------- --------------------------------
Adam Couch, Chief Executive
Officer
----------------------------- --------------------------------
Mark Bottomley, Finance
Director
----------------------------- --------------------------------
Powerscourt +44 (0)20 7250 1446
----------------------------- --------------------------------
Nick Dibden / Sophie Moate cranswick@powerscourt-group.com
/ Samantha Trillwood
----------------------------- --------------------------------
Notes:
1. Cranswick's activities are focused within the UK and include
the processing and supply of fresh pork, sausage, bacon, cooked
meats, premium cooked poultry, charcuterie, pastry products and
sandwiches. Products are primarily supplied into the UK food
retail, food service and food manufacturing sectors. Results for
the year to 31 March 2015 showed revenues of GBP1,003m and profit
before tax of GBP52.8m.
2. Cranswick expects to announce its full year results for the
year ended 31 March 2016 on 24 May 2016.
3. Historical financial information for Crown is extracted from
unaudited management accounts for the year ended 31 December
2015.
4. This announcement contains certain forward looking statements
with respect to the financial conditions, results of operations and
businesses of Cranswick. These statements involve risk and
uncertainty because they relate to events and depend upon
circumstances that will occur in the future. There are a number of
factors that could cause actual results or developments to differ
materially from those expressed or implied by these forward looking
statements. Nothing in this announcement should be construed as a
profit forecast.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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