Cranswick has acquired pig breeder East Anglian Pigs in a move that will further shorten its pork supply chain and strengthen its position in the premium, higher-welfare pork sector.
Financial details of the deal were not disclosed, but Cranswick said EAP had gross assets of £11.8m at the end of March. Analysts Shore Capital said they believed the deal was an all-cash transaction funded from Cranswick’s “considerable balance sheet resources”.
EAP is already a supplier to Cranswick and will continue as a separate operation with its own management team. It breeds, rears and finishes outdoor pigs, and is Freedom Foods and Red Tractor certified.
Cranswick said the acquisition showed its “ongoing commitment to, and greater control over, a robust and integrated supply chain with a clear focus on premium, British ingredients. The acquisition of EAP will give the Group’s customers and the UK consumer further assurance as to the provenance and quality of its products”.
Shore Capital said Cranswick was “going back to the future” with its acquisition of EAP. “In many respects, this modest deal represents Cranswick returning to some of its agricultural roots, albeit in a very different commercial world,” it said in a note.
Shore added Cranswick’s deal came at “an interesting time for the UK pig industry”, with a contracting UK herd, new EU welfare regulations on sow stalls and the fallout from the horsemeat crisis – including growing interest from retailers in sourcing more British meat. “That Cranswick is further guaranteeing and shortening elements of its supply chain and introducing greater transparency makes eminent sense to our minds,” it said.
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