Cranswick PLC (LSE:CWK) has acquired pet food maker Grove Pet Foods for an undisclosed sum, marking the food producer's entry into the pet food market a year after a failed tilt for a rival manufacturer.
The FTSE 250-listed company, which provides meat to supermarkets, said the addition of Grove Pet Foods would represent a "platform for future growth in the attractive UK pet food market” as well as diversification into a complementary category.
A vertical integration opportunity will be beneficial to the combined business, said Cranswick chief executive Adam Couch, who said the existing facility has the capacity and footprint for potential further expansion.
A move into the pet food market has been on East Yorkshire-based Cranswick's agenda since 2020, when it tried to buy Inspired Pet Nutrition, which makes dog and cat food brands under the Harrington and Wagg brands but walked away from the deal, which was eventually sealed by a private equity buyer.
With 59% of UK households owning a pet, the pet food industry has been growing steadily, though Cranswick exited the market with the sale of its Pet Products unit in 2009.
Grove Pet Foods, which operates predominantly from Lincolnshire, is a private label supplier and producer of dry dog food for many brands. It also has its own brands such as Vitalin and Alpha Feeds. Grove’s managing director John Walgate will continue to lead the business following the deal.
Cranswick’s other diversification moves in the past year included the acquisition of plant-based Ramona's Kitchen and Atlantica UK, in a push to offer more growth in non-meat.