Faccenda acquires Cranberry Foods

UK poultry supplier Faccenda has acquired the country’s second biggest turkey producer Cranberry Foods for an undisclosed amount, to strengthen its position as a leading food producer.

According to Faccenda, the acquisition creates a major cross-sector food business and will boost its turnover to £400m.

Faccenda managing director Andy Dawkins said the deal makes the company one of the largest food producers in the UK.

"The clear synergies between our two businesses mean our customers will continue to enjoy an expert and trusted service, while allowing us to grow the scale and range of our products," Dawkins added.

The transaction complements Faccenda’s recent announcement to upgrade its Telford and Brackley sites, which includes setting up new cutting and portioning lines, chilled warehousing, and new administration facilities.

Cranberry Foods monitors breeding, hatching and growing of birds and produces a wide range of fresh and frozen turkey products for supply to supermarkets and foodservice sector in the UK.

The company’s processing facilities are located in Scropton, Derbyshire and Abergavenny, South Wales, while its farming operation are present across Yorkshire and South Wales, and has a turnover of £100m.

Faccenda, founded in 1962 as an agricultural business, is a vertically integrated food business with sites in Brackley, Northamptonshire, and Telford and Dudley in the West Midlands and farming operations in south and east of England.

In 2011 Faccenda posted a 13% increase in sales from 2010 to £313m, however its operating profits dropped from £8.5m in 2010 to £2.6m in 2011 due to increase in feed costs and challenging conditions in the retail market.