Disposal of Cherry Valley to Bankok Ranch PLC

DATE
March 2010

TRANSACTION TYPE
Corporate Disposal

VALUE
£ Undisclosed

SECTOR
Food & Beverage

Spayne Lindsay & Co. LLP advises on the disposal of Cherry Valley Farms Limited.

An agreement has been reached to sell Cherry Valley Farms Limited (“Cherry Valley”) to Bangkok Ranch Public Company Limited (“Bangkok Ranch”). The deal will close at the end of March 2010. The value of the deal has not been made public.

Established in 1959 in Lincolnshire, Cherry Valley is now the leading global breeder and supplier of livestock to the duck industry. In recent years it has established a substantial presence in China which represents over 80% of the world’s production of ducks. Cherry Valley, an integrated producer, is also the leading supplier of frozen duck to the Chinese restaurant segment in the UK and also sells into the retail market for fresh product. Cherry Valley has annual revenue of approximately US$90m.

Bangkok Ranch is controlled by private equity investors Navis Capital and Rabobank. It is a leading processor of ducks based in Thailand and a longstanding customer for Cherry Valley livestock. Bangkok Ranch has a substantial market share in Thailand and a growing business exporting cooked duck to European markets.

Spayne Lindsay has advised and worked very closely with Cherry Valley and its stakeholders over the past few years to help ensure a strategically successful transaction for all concerned. We are delighted to have been involved with Cherry Valley, which is at a fascinating stage of its life, with impressive growth being achieved on the back of its successes in a rapidly evolving Chinese market. We believe this transaction helps provide an exciting platform for the business in the coming years.