Deal will create £1bn meat business

Oct 10 2007 by Iain Laing, The Journal

LAW firm Watson Burton is advising on the proposed sale of Lincolnshire food manufacturer George Adams to Tulip Limited, the British subsidiary of Danish Crown.

The Newcastle firm worked on the deal which, subject to approval by the competition authorities, will create one of the UK’s strongest meat groups with sales of more than £1bn and employing around 9,000 people.

The £200m turnover family-run business of George Adams began in 1910 above a butcher’s shop in Spalding, Lincolnshire, producing hand-raised pork pies.

For 98 years, the business has remained within the Adams family’s ownership. It employs more than 2,000 people at sites in Spalding, Boston, Frampton and Ruskington.

As part of the deal, Mark Adams, George Adams’ chairman and chief executive, will become an executive director and will join the main board of the new group chaired by Tulip’s chairman, Carsten Jakobsen.

Watson Burton corporate partners Lester Wilson and Martin Smith advised the shareholders, who also retained David Hardless, of Park Place Corporate Finance.

In mid-September, George Adams also disposed of its van sales operation that operated from 14 depots around the country including Durham, Leeds, Spalding and Ruskington to Kerry Foods plc for an undisclosed sum. Lester Wilson and David Hardless both advised George Adams on the terms of that sale.

Mr Wilson said: “This has been an emotional time for the Adams family with the group being sold just two years shy of its centenary year. However, there is an excellent strategic fit with Tulip and the family are pleased that the George Adams brand and name will be in good hands. Agreement on the two transactions was reached in less than a month and because of the sheer scale of the group, this took an enormous amount of effort and goodwill on all sides.” Clearance from the competition authorities is expected by the end of November. Deloitte advised Tulip on the terms of the deal.

Gillian Hall, Watson Burton’s head of corporate law, said: “This deal crowns a series of high-profile transactions throughout the north of England, advised by Watson Burton’s corporate team.

“This summer we have successfully advised on strategically important work for clients, including acquisitions for Federal Signals, Immunodiagnostic Systems plc, J A Hotels, Brill Properties Limited and Watchmoor Estates.

“The corporate team at Newcastle and Leeds handles transactions at the highest level and complexity. The combination of quality technical advice and personal service at sensible prices has attracted work in a wide variety of sectors.”