Boparan Private Office, the private investment vehicle of Ranjit Singh Boparan and owner of the 2 Sisters Food Group, has agreed to acquire Europe’s biggest turkey producer, Bernard Matthews in a pre-packaged administration deal for an undisclosed amount.
After growing into a company that encompasses more than 50 farms and that raises and produces more than seven million turkeys per year, a combination of recent factors have negatively affected Bernard Matthews’ bottom line, including an outbreak of bird flu at its Holton factory in 2007 and a significant jump in feed costs in 2011. In May of this year, the company made 30 of its 2,000 employees redundant, stating that the company will only be able to pay them statutory redundancy pay rather than a week’s pay for each year with the company.
In addition, the company was said to be delaying payments to its suppliers, according to The Telegraph, and was considering the sale of land to raise cash.
In 2013, the company took on its first outside investor when Rutland Partners injected the embattled company with an investment of £25 million. However, the firm’s backing was not enough to turn the tide for Bernard, which saw turnover fall by £30 million last year to £276 million. And in June of this year, Rutland Partners decided to engage Pricewaterhouse Cooper to drum up perspective buyers.
Food Manufacture reports that, commenting on the acquisition, Rutland Partners said in a statement, “While disappointed that the business has continued to struggle during our ownership we are pleased that it has now been acquired by Ranjit Boparan with access to a large, UK poultry group and that all the jobs have been preserved.”
Unite, the workers union representing the 2,000 Bernard Matthews employees, stated that although the sale appears as if it will secure the jobs of the remaining employees, there remained numerous points to discuss.
“…in takeover situations there are always matters that need to be clarified,” said Steve Harley, Unite regional officer. “Unite is meeting the company tomorrow where searching questions will be asked on future employment, pay and terms and conditions. We will also be asking about the status of the pension scheme under the new owners, although it is expected that our members won’t be affected in this respect by today’s takeover.”
Despite the challenges, Boparan Private Office is optimistic for Bernard Matthews’ future.
“We have a proven track record in turning around businesses and we aim to make Bernard Matthews great again,” the firm said. “This deal is ultimately good news for UK consumers and our customers, who will benefit from a secure supply of British turkey from one of the most recognisable [sic] brands in the UK.”
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Lynda Kiernan