Cranswick PLC Acquisition of pork processing business (2672P)
November 16 2016 - 2:00AM
UK Regulatory
TIDMCWK
RNS Number : 2672P
Cranswick PLC
16 November 2016
16 November 2016
Cranswick plc
("Cranswick" or "the Company" or "the Group")
Acquisition of leading Northern Irish pork processing
business
Cranswick, a leading UK food producer, announces that it has
acquired the whole of the issued share capital of Dunbia Ballymena
("Ballymena") for cash.
Dunbia Ballymena is a leading Northern Irish pork processing
business which currently employs 360 people and processes around
7,800 UK farm assured pigs each week. This acquisition enhances
Cranswick's pig processing capability and establishes a significant
presence in Northern Ireland.
Dunbia Ballymena operates from a modern, purpose built facility
in Country Antrim, Northern Ireland and has a strategic,
well-established supply chain with strong links to the local
farming community. In the year to 29 March 2016 revenues were
GBP72.4m. Jack Dobson, Executive Director of Dunbia Limited, will
support Ballymena in a consultancy capacity to help ensure a smooth
transition. The transaction will be funded from Cranswick's
existing debt facilities and is expected to be earnings neutral in
the current financial year and earnings enhancing in FY18.
Adam Couch, CEO 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."
Enquiries:
Cranswick plc 01482 372 000
----------------------------- --------------------------------
Adam Couch, Chief Executive
Officer
----------------------------- --------------------------------
Mark Bottomley, Finance
Director
----------------------------- --------------------------------
Powerscourt 020 7250 1446
----------------------------- --------------------------------
Nick Dibden / Lisa Kavanagh 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 fresh and cooked poultry, charcuterie and pastry
products. Products are primarily supplied into the UK food retail,
food service and food manufacturing sectors. Results for the year
to 31 March 2016 showed revenues of GBP1,070m and profit before tax
of GBP58.7m.
2. This announcement is based on information sourced from unaudited management accounts.
3. 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.
4. The Company's next scheduled comment on trading will be the
interim results announcement on 29 November 2016.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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