The Hull-based company also provided an update on trading for the three months to June 30, 2016. Cranswick said it had made a “positive start” to the current financial year.
Revenue in the three months to June 30 was 11 per cent ahead of the same period last year, driven by strong volume growth.
Underlying revenue was five per cent higher than the same period last year, with corresponding volumes up 12 per cent, as the benefit of lower input prices continued to be passed on to the group’s customers.
Cranswick said that the integration of Crown Chicken, which was acquired in April, is progressing to plan “with the business making a positive contribution in line with the board’s expectations”.
The statement added: “As part of Cranswick’s strategy to focus on its core protein businesses, the board is pleased to announce the sale of the group’s sandwich business, The Sandwich Factory Holdings Limited, to Greencore for a cash consideration of £15m.”
In the year to March 31, the sandwich business generated revenues of £54m.
Adam Couch, the chief executive of Cranswick, said: “I am pleased to announce the sale of our sandwich business to Greencore, which is very much in line with our strategy of focusing on our core protein businesses.
“I am particularly delighted that the sandwich division is being acquired by a proven global leader in Greencore, who will bring new opportunities and strengths to this business, its customers and the staff to whom, on the board’s behalf, I would like to extend our thanks for their long-standing loyalty and commitment to Crans- wick.”
Commenting on the outlook, Cranswick said that “with experienced management at all levels of the group, a strong range of products, a well-invested asset base and a robust financial position, the board is confident in both the prospects for the current financial year and the continued long-term success and development of the business.”