Cranswick (CWK) has announced the acquisition of premium outdoor pig farming business Packington Pork from the Mercer family.
Packington Pork comprises pig farming and rearing operations and specialises in the production of British free range and outdoor bred pigs, operating predominantly from a range of sites across Staffordshire, Nottinghamshire and Lincolnshire.
The deal increases Cranswick’s self-sufficiency in UK pigs processed to over 25%.
Cranswick said the deal “secures direct control over a significant part of its supply chain for premium pigs, reinforcing our commitment to developing a sustainable and traceable farm to fork operation”.
The transaction does not include the Packington Free Range business, which will be retained by the Mercer family as a standalone business operating under the Packington brand.
CEO Adam Couch commented: ” This acquisition strengthens our existing farming operations and reinforces our commitment to supporting and growing the British pig farming industry. It also aligns to our strategy of enhanced transparency and provenance of our food from farm to fork.
“We have worked closely with the business for over 14 years. We welcome the existing farm management team and look forward to investing in and developing the business over the coming years.”
House broker Shore Capital said the move ”could be seen in some quarters as any opportunistic move to react to the market signals of the global African Swine Fever challenge.”
The broker said ASF is likely to remain a ”medium-term market challenge for the global pig and wider protein markets”.
However, ”Cranswick has delivered very strong H1 export growth and further internal pig supplies should also further build its capability to advance international activity”.
Cranswick shares edged up 0.1% to 3,324p on the news.
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