Food manufacturer Browns Food Group has announced a "substantial" multi-million-pound investment in AK Stoddart Limited to create Scotland's "largest privately-owned meat business".
Browns Food Group acquired shares from existing shareholders Colin Wright and Ton Christiaanse, positioning the new entity as "the largest Scottish-owned meat business" turning over £300 million, with plans to reach £500 million through a "committed" investment programme.
Incorporated in 1959, Stoddart’s employs 220 staff and currently processes 35,000 cattle per annum through its abattoir in Ayr and processing facilities in Broxburn.
The alliance between Browns Food Group and Stoddart’s will bring additional resources and strategic opportunities that will "enhance the company's capabilities" and market position.
Wayne Godfrey, Browns Food Group CEO, said: "This investment expands our footprint in the red meat sector and will create further opportunities for growth. Stoddart’s has demonstrated a strong track record of success and innovation, and we look forward to partnering with Grant and Julie to drive the business forward and achieve new milestones together."
Grant Moir, AK Stoddart managing director, said: "We are thrilled to welcome Browns as a shareholder in the business. We have known Wayne and the Browns team for many years. After meeting with the Browns family, we feel confident that this is the right decision for the business. Being part of a larger organisation will provide greater stability and growth opportunities for the industry as a whole."
Reinforcing the value of the alliance between Browns and Stoddart’s, Sarah Miller, chief executive of Quality Meat Scotland (QMS), added: “Browns Food Group’s announcement of acquiring a shareholding in AK Stoddart is welcome news for the red meat sector. This alliance aligns with both businesses' ambitions to grow opportunities for pork and beef supply into retail, export, and wholesale markets.
Browns has shown a deep, long-term commitment to the red meat sector, following their investment in expanding Specially Selected Pork processing in Scotland.
“We now welcome the same vision for quality Scotch beef. This collaboration and partnership constitute important investment into the skills, production, and market growth of two of our most important domestic meats—beef and pork."
The two remaining shareholders of Stoddart’s, Grant Moir, managing director, and Julie Fancourt, finance director, will continue to manage the day-to-day operations, ensuring that the company’s mission and vision are upheld.
