The privately-owned Faccenda Group's acquisition will make it one of the country’s largest food manufacturers with a turnover of about £400M.
Julian Wild told FoodManufacture.co.uk the deal was unsurprising given the already highly-consolidated nature of the UK poultry industry. “The market is dominated by the big players such as Moy Park, which is Brazilian-owned, and 2 Sisters. As a smaller player, Cranberry was always a potential target,” he said.
“With organic growth, very hard to come by, the only way for companies to grow significantly was by mergers and acquisitions,” he added.
The trend would continue, Wild predicted, as food manufacturers battled rising cost and price pressure from major retailers. “We are seeing it too in the sandwiches sector with Greencore holding almost a dominant position.”
Significant penetration
Faccenda said the deal creates a major cross-sector food business with significant penetration in the UK’s growing retail and food service sector. The purchase also completes its planned internal investment at its Telford and Brackley sites, said the firm.
Andy Dawkins, Faccenda md, said: “This is an exciting and important acquisition for Faccenda and its employees, making us one of the UK’s largest food producers. The clear synergies between our two businesses mean our customers will continue to enjoy an expert and trusted service, while enabling us to grow the scale and range of our products.”
Cranberry Foods’ joint mds Andrew Lewins and David Horn will remain with the business in their existing positions until a smooth transition into the Faccenda group has taken place.
Horn said: “Cranberry Foods has quickly become one of two major turkey producers in the UK since we founded the company in 2003. Our success has been built on a commitment to product quality, service and integrity – all of which we share with Faccenda.”
British farming
Lewins said: “We are delighted to be joining the Faccenda family. They have been a UK success story for many years and share our commitment to British farming.
“Through this acquisition Cranberry gains the benefits of being part of a larger food business that seeks to build on its existing strengths and successes. It heralds a new era for Cranberry Foods and its employees.”
Faccenda supplies fresh chicken products and employs 2,000 people in hatcheries, farms, feed mills and processing plants across the UK.
Cranberry Food supplies supermarkets and the food service sector. The company has 750 employees and a turnover of about £100M. Its factory sites include processing plants in Scropton, Derbyshire and Abergavenny, South Wales.
The firm operates farms from Yorkshire to South Wales.