Acquisition

Cranswick PLC
02 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 issued
share capital of Delico, a producer of pre-packed cooked meats based in Milton
Keynes. Delico began trading in 2000 from new purpose-built premises extending
to 98,000 square feet. Capacity utilisation is currently running at around 25
per cent.


Delico will provide capacity to enable Cranswick to accelerate the development
of its customer base and facilitate its record of growth. The plant is amongst
the most modern facilities in the United Kingdom for the production of
pre-packed cooked meats.


Delico's audited sales for the year ended 31 December 2005 amounted to £12.4m
with  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 indicate
sales 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 is
being satisfied by a cash payment of £14.3m, utilising the Company's cash
resources 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 years
unless the board of Cranswick consents to any disposal. The number of
Consideration Shares to be issued has been calculated by reference to the
closing mid-market share price of Cranswick for the 15 dealing days preceding
completion of the acquisition.


The pre-packed cooked meats market in the UK is valued at in excess of £1.3bn
and continues to grow strongly. Data for the year to 10 September 2006 shows the
market up 8 per cent year on year (TNS Superpanel). Cranswick entered the
pre-packed cooked meats market with the acquisition of Perkins Chilled Foods in
January 2005. Perkins was merged with Cranswick's pre-existing cooked meats
business and renamed Cranswick Convenience Foods ('CCF'). In the year to 31
March 2006 sales at CCF reached £150m compared to £57m previously. Delico will
be integrated into CCF.


Jeff Winter, managing director of Delico, will continue in that position and we
welcome Jeff and his colleagues to the Cranswick group.


Enquiries:


Cranswick plc
Martin Davey, Chairman                        01482 372080 (mobile [phone])
John Lindop, Finance Director                 01482 372090 (mobile [phone])







                      This information is provided by RNS
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