A £28m turnover poultry business in Pembrokeshire has been acquired by a major international food processing firm.
Under the deal, a majority stake in Capestone Organic Poultry has been acquired by Euronext Paris-listed LDC Group, one of Europe’s leading poultry supply companies.
Established by Justin Scale 20 years ago, on the family farm in Walwyn’s Castle, Capestone has grown into a business that now supplies 7% of the UK’s free-range and organic poultry market. As well as having a strong presence in the retail market, including sales of Christmas turkeys and other meats, the company also supplies the baby food market. In 2020, the company achieved sales of approximately £28m. Specialist lawyers from Hugh James acted for Capestone’s Justin and Kate Scale on the sale. Justin Scale retained a minority shareholding alongside Capestone’s chief executive, Rob Cumine.
Commenting on the acquisition, Justin Scale said: “This has come at the right time for our family, but I’m not going anywhere. I’m very much looking forward to continuing to be a part of Capestone and its exciting expansion – which is great for the local economy and community.”
The Hugh James legal team was led by Partner and Head of Corporate and Commercial, Gerallt Jones, who said: “This deal is a great Welsh success story, particularly during a difficult period for the food and drink sector – with COVID, Brexit and economic uncertainty impacting the market heavily. Capestone is a home-grown business that has become a leading producer on an international scale. To attract investment from a European heavyweight like LDC is testament to the hard work and dedication of Justin, his team and Welsh farmer growers.”