FDBusiness.com

UK food group Cranswick has acquired the whole of the issued share capital of Dunbia 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 £72.4 million. Jack Dobson, executive director of Dunbia Group, will support Ballymena in a consultancy capacity to help ensure a smooth transition.

Adam Couch, chief executive of Cranswick.

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, chief executive of Cranswick, comments: “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.”

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 £1.07 billion and profit before tax of £58.7 million.