Cranswick Regulatory News (CWK)

2 Nov 2006 07:01

Cranswick PLC02 November 2006 2nd November 2006 Cranswick plc ("Cranswick" or the "Company") acquires Delico Limited ("Delico") The Board of Cranswick today announces the acquisition of the entire issuedshare capital of Delico, a producer of pre-packed cooked meats based in MiltonKeynes. Delico began trading in 2000 from new purpose-built premises extendingto 98,000 square feet. Capacity utilisation is currently running at around 25per cent. Delico will provide capacity to enable Cranswick to accelerate the developmentof its customer base and facilitate its record of growth. The plant is amongstthe most modern facilities in the United Kingdom for the production ofpre-packed cooked meats. Delico's audited sales for the year ended 31 December 2005 amounted to £12.4mwith a loss before tax of £0.7m. Gross assets at that date were £15.5m.Unaudited management accounts for the eight months to 25 August 2006 indicatesales of £12.4m and profit before tax of £0.4m. Gross assets at that date were£16.1m. Net cash balances amounted to £0.6m. Cranswick has agreed to pay £17.9m for the share capital of Delico which isbeing satisfied by a cash payment of £14.3m, utilising the Company's cashresources and banking facilities, and the issue of 478,766 new ordinary shares("the Consideration Shares") in Cranswick to one of the vendors who has agreed,subject to limited exceptions, to hold the shares for a minimum of two yearsunless the board of Cranswick consents to any disposal. The number ofConsideration Shares to be issued has been calculated by reference to theclosing mid-market share price of Cranswick for the 15 dealing days precedingcompletion of the acquisition. The pre-packed cooked meats market in the UK is valued at in excess of £1.3bnand continues to grow strongly. Data for the year to 10 September 2006 shows themarket up 8 per cent year on year (TNS Superpanel). Cranswick entered thepre-packed cooked meats market with the acquisition of Perkins Chilled Foods inJanuary 2005. Perkins was merged with Cranswick's pre-existing cooked meatsbusiness and renamed Cranswick Convenience Foods ('CCF'). In the year to 31March 2006 sales at CCF reached £150m compared to £57m previously. Delico willbe integrated into CCF. Jeff Winter, managing director of Delico, will continue in that position and wewelcome Jeff and his colleagues to the Cranswick group. Enquiries: Cranswick plcMartin Davey, Chairman 01482 372080 (mobile 07775 576426)John Lindop, Finance Director 01482 372090 (mobile 07768 362592) This information is provided by RNS The company news service from the London Stock Exchange