Cranswick Expands Cooked Meats Business
UK food processor Cranswick has acquired Kingston Foods for an undisclosed sum. Kingston is a producer of premium cooked and roasted meat products and at 27 January 2012 had gross assets of £3.7 million. The acquisition of Kingston strengthens Cranswick’s cooked meat production capabilities, further diversifies its product range in a growing market and broadens the group’s customer base.
According to Shore Capital Stockbrokers,Kingston is primarily servicing ‘quick service restaurants’ and so the deal is also consistent with Cranswick’s intention to drive food service turnover from £60 million to £160 million in forthcoming years.
In the most recently published company accounts (January 2011), Kingston Foods reported group sales of £11.6 million and EBIT of £0.5 million, implying an EBIT margin of 4.3%. Shore Capital Stockbrokers believes recent growth has been strong, both from a sales and profits perspective, and the deal is expected to be modestly earnings enhancing in year one.
Tony Turner and Paul Williams, the vendors, will continue in their current positions as managing director and operations director respectively at Kingston Foods.
