Takeover plans at early stage

Mar 25 2008 Evening Gazette

THE BOSS of a growing Hurworth food firm has revealed he is in “early stage” discussions to buy another Tees Valley company after snapping up the Billingham division of Cocked Hat Farm Foods Ltd.

Chairman and founder of Country Valley Foods Ltd, Stewart Munro, said further acquisitions would be part of the company’s future growth strategy after completing a deal that would boost turnover to £15m, strengthen the company’s presence in the region and create at least six jobs at the Darlington site.

The merged companies will create one of the largest meat and poultry wholesalers in the North-east and enable Country Valley Foods to operate from the larger Billingham site.

The existing Darlington site will become a dedicated catering butcher and meat processing facility with emphasis on locally sourced beef, lamb and pork and the creation of bespoke products for hotels and restaurants.

Cocked Hat Farm Foods has a base at Ripley, North Yorkshire, as well as the Billingham division, which employs 19 staff. Mr Munro confirmed there would be no job losses as a result of the deal.

At a time when other wholesalers are struggling to cope with rising commodity prices, he said: “The acquisition gives us badly needed space and increases our storage capacity dramatically. We have concentrated on locally-sourced produce and stay at the quality end of the market.

“We are also in discussions with ASDA to sell our Newbould branded pork, beef and lamb products into its stores. I am reasonably confident that this will go ahead in the next two or three months.”

In February 2007, Country Valley Foods bought Henry Newbould Ltd, a Middlesbrough-based chain of 12 butchers shops established in 1856 by Wilson Newbould. Last summer the company landed a contract to supply its branded sausages to ten Asda stores.