The deal, for an undisclosed sum, will see the producer take control of Packington’s farming and rearing operations across Staffordshire, Nottinghamshire and Lincolnshire, which specialise in the production of British free-range and outdoor-bred pigs from former owner the Mercer family.
Cranswick said the transaction would boost the company’s self sufficiency in UK pigs processed to more than 25%, securing direct control over a significant part of its supply chain for premium pigs.
However, the meat processor has not acquired the Packington Free Range business, which was retained by the Mercer family as a standalone business under the Packington brand.
Commenting on the acquisition, chief executive Adam Couch said: “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.”
The Packington Pork deal comes just six months after Cranswick acquired London-based Mediterranean food producer Katsouris Brothers for £43.5m, strengthening the producer’s continental products business and broadening its product offering.
Meanwhile, last month, industry experts forecast further growth for Cranswick as a result of rising export opportunities to Asia in the wake of the African Swine Fever crisis and its move into the plant-based sector.
Commenting on Cranswick’s results for the six months ended 30 September 2019, analysts at Shore Capital reinforced the strong performance of the business.