Kerry Foods has sold its chilled pastry business to Pork Farms Ltd for an undisclosed amount.
Nottingham-based Pork Farms confirmed that the move will see it form a new company by incorporating the acquired Kerry Foods assets and its existing savoury pastry facilities in Poole and Spalding. Chris Peters, group managing director, and Garety Voyle, chairman, will head up the new venture which is expected to help it expand its current pork pie manufacturing operations.
As part of the agreement, Pork Farms will control Kerry Foods' manufacturing, warehouse and back office support functions. It will also allow the company to make Kerry Foods' Wall's and Millers savoury pastry brands under a new license. Officials believe the transaction will help to the company build on its innovations and quality, allowing for further investment opportunities in the future.
Mr Peters described the deal as an "extremely exciting next step for our business", adding: "It will provide our customers with a streamlined, more responsive and better invested supply chain, reflecting the increasingly competitive retail landscape that we are seeing in today’s market as consumers’ shopping habits change."
Pork Farms has been part of Vision Capital since it was acquired in 2007. Andy Rich, a partner at Vision Capital, explained that the deal with Kerry Foods allows the company to build on its solid trading over the last seven years. Mr Rich is also confident that the move will ensure for a much better product range for customers for years to come.
Pork pies are one of the UK's favourite snacks and Pork Farms proudly proclaims that its are the best in the country. It stocks both an original and Melton Mowbray version of pork pie while also makes a range of slices, sausage rolls and scotch eggs. The new deal will help the company to expand its offering and meet different customer needs.