Case Study: Farming family’s acquisition almost doubles size of poultry operation
Henry Dent, along with his parents Trevor and Sue, run Dinsdale Farming Limited, near Darlington. The family rear 270,000 birds, seven times a year and also have a 130 hectare arable enterprise.
They wanted to grow their business, expanding in an area they are familiar with and where they know they can get sustainable returns, but planning and environmental legislation meant they had limited room to increase production at their existing site.
How we helped
A long-standing accountancy client of Armstrong Watson, the family engaged with the firm’s corporate finance and tax teams to advise on an acquisition of a second site and to project manage the transaction.
The transaction was to acquire 100% of the entire share capital of Musterfield Poultry Growers Limited which included the company’s site and equipment.
This initially involved reviewing the historic financials of the business and forward looking financial projections in order to advise on the overall viability of the project.
Along with legal advisers from Muckle LLP, the Corporate Finance team advised on the preparation of Heads of Terms and negotiated with the sellers’ advisers until they were in an agreed position.
Detailed financial due diligence was carried out and an agreed position on surplus cash and working capital was negotiated.
Armstrong Watson’s tax and corporate finance teams collaborated with Muckle to advise on the financial and tax aspects of the SPA and project managed the transaction through to completion. This involved regular communication with Muckle, HSBC and the sellers’ advisers to ensure the momentum was maintained throughout and completion was achieved in the quickest time possible.
Results
The addition of a second, ready-made site will mean that in 2025, the family can produce hundreds of thousands more stock.
“It has been a long-term goal for me to be able to expand the family business and this was achieved with the exceptional support received from Armstrong Watsons and Muckle LLP all of whom had my best interests at heart and working as one team throughout the process.” Henry Dent, of Dinsdale Farming Limited.
Andrew Robinson, Senior Agricultural Partner, who has supported the Dent family for more than a decade, said: “It’s fantastic to see a family business pushing on but also seeing Trevor and Sue backing Henry, who has driven this acquisition. This is great to see in a farming family. We wish them all the best and will continue to support them in their future endeavours.”
Corporate Finance Partner David Wilson, added: “We were delighted to support and advise Henry with this significant transaction. Dinsdale Farming has been a hugely successful, family business for decades and this acquisition further strengthens their presence in the poultry farming sector.”
Lawyers Mike Spetch and Charlotte Patterson-Ryan, of Muckle LLP, also advised on the deal.
