Dunbia bought by FTSE 250 sausage maker

County Antrim pork producer Dunbia, which processes about 7,800 pigs each week, has been bought by a British gourmet sausage giant.

Dunbia Ballymena, which employs about 360 workers and has an annual turnover of £72 million, has been acquired by gourmet sausage producer Cranswick, it emerged on November 16.

Cranswick said the deal enhances its pig processing capability and establishes a significant presence in Northern Ireland.

Cranswick did not reveal details about the price of the transaction but said it will be funded from its existing debt facilities. It added that the deal is expected to be “earnings neutral” in the current financial year before moving into profit in 2018.

The sausage specialist features in the FTSE 250 and saw its stocks rise 1.26% in the hours after the buy was declared.

Cranswick’s chief executive officer Adam Couch said: “This acquisition strengthens our UK pork processing business and provides us with greater control over our supply chain, ensuring that we can maintain the production and processing of high quality, UK farm assured, pigs which is central to our customer’s requirements.

“The management at Ballymena have created long lasting and sustained supply chain relationships and we look forward to building on this and continuing to invest in the facilities, and the team, over the years ahead.”

Dunbia’s Executive director Jack Dobson is expected to remain a consultancy capacity to support the transition.

The deal gives Hull-headquartered Cranswick, which is listed on the London Stock Exchange and has a turnover of more than £1bn, a significant presence in Northern Ireland.

Mr Couch added: “We welcome Jack and the team at Ballymena to Cranswick and look forward to working with them to develop the business further.”

The deal comes months after a major collaboration between Dunbia and UK food firm 2 Sisters stalled.