Cranswick Plc (LON:CWK) have expanded their pig processing business with a new acquisition on Tuesday.
The firm said that it has acquired a pig farming and rearing business in the UK, which forms part of its plans to grow and expand into other sectors.
Shareholder should be pleased with the move by Cranswick as this should allow a more pragmatic approach to production and streamline costs.
The firm said: “Following the acquisition of Packington Pork in December, which specialises in British free range and outdoor pigs, today’s transaction further increases Cranswick’s self-sufficiency in UK pigs processed to over 30%. The transaction reinforces Cranswick’s commitment to a sustainable and traceable farm to fork operation, in line with its Second Nature strategy.”
Cranswick have acquired the Buckle family’s pig farming and rearing operations, as well as the family’s 50% share of the White Rose Farms Ltd pig production joint venture.
This joint venture was set up by Cranswick and the Buckle family in 2018. These operations currently run in Lincolnshire and Yorkshire.
Adam Couch, CEO of Cranswick, commented:
“I am pleased to announce today’s transaction, which further reinforces our strategic commitment to supporting and growing the British pig farming industry. We have worked with the Buckle family for over 25 years and we are delighted to welcome Rick, as Managing Director of White Rose Farms, and the wider team to Cranswick.”
Cranswick give strong quarterly update
In July, the firm gave shareholders an impressive update which it described as ‘encouraging’. Revenues were up 1.5% for the three months to 30 June 2019, compared to the same period on-year.
Far East exports were up 10% due to the African Swine Fever outbreak in China, and UK pig prices were up 10%.
The Company acquired Mediterranean food company Katsouris Brothers for a £43.5 million interest. They also invested in a poultry primary processing facility at Eye in Suffolk. The new facility cost £75 million and will double the Company’s current processing capacity.
Shares in Cranswick trade at 3,696p (+1.37%). 11/2/20 14:25BST.
