April 7, 2009
Cranswick to acquire pork processing company
British pig meat processor Cranswick PLC is to buy the pork processing business of Bowes of Norfolk Ltd.
Cranswick, which supplies fresh pork and gourmet sausages to UK food retail and manufacturing sectors, said it would acquire the whole of the Bowes business, including its pig rearing business, for GBP17.2 million (US$25.52 million).
Upon completion of the deal, the pig rearing business will be sold back to a management buy-out team comprising certain members of the Bowes family and certain members of Bowes' management.
Cranswick said the transaction is expected to be completed in 10 weeks and would be funded from existing bank facilities and was subject to clearance from the UK Competition authorities.
The Bowes business which was set up in 1957, generated sales of GBP75.8 million and profits of GBP2.1 million in the year to March 2008 and will continue as a separate operation within Cranswick with its own management reporting directly to director Adam Couch.
US$1 = GBP0.68 (Apr 7)
