UK meat processor Cranswick is to acquire the pork processing business Bowes of Norfolk in a deal worth GBP17.2m (US$x).
The transaction, which remains subject to regulatory approval, will see members of the Bowes family retain the company’s arable farming business together with a portfolio of properties.
Bowes’ pig rearing business will be sold to a management buy-out team, Cranswick said. Should the deal get regulatory clearance, the MBO will supply pigs to the Cranswick-owned Bowes.
Cranswick chairman Martin Davey, said: “Bowes is a significant operator in pig-meat processing and the acquisition reinforces our position in that sector. The business will continue as a separate operation with its own management team reporting directly to Adam Couch, Cranswick main board director responsible for the group’s fresh pork operations.
“We look forward to the 620 employees who work for the pork-processing operation of Bowes joining us and to working with the MBO team in respect of the supply of pigs”.
Shares in UK meat processor Cranswick jumped by more than 4% last week after the company predicted annual sales would be ahead of expectations.
The sausage and bacon maker said fourth-quarter sales climbed 11% with pork sales up 23% and continental sales rising 22%.