Dean’s of Huntly has purchased fellow Scottish shortbread manufacturer Duncan’s of Deeside for an undisclosed sum.
The combined business is projected to generate £20m in revenue this year.
Operations will be consolidated at Dean’s factory in Huntly following a six-month transition period that will see a phased reduction of shifts at Duncan’s site in Laurencekirk, which will then be put up for sale.
All Duncan’s employees have been offered positions at the Huntly facility, which is 54 miles from Laurencekirk.
Bill Dean, managing director and founder of Dean’s of Huntly, said that the acquisition “builds on recent successful organic growth by acquiring a well-established, high-quality business in the shortbread market”.
Paul Duncan, co-owner and managing director of Duncan’s of Deeside, will join the combined business as deputy managing director. He commented: “We are very excited to work with the Dean’s of Huntly team to deliver the next exciting phase of growth for the combined businesses.”
Dean’s has invested significantly in its Huntly facility, which, according to Dean, possesses the capacity to support approximately £30m in sales. The merger is also expected to increase combined export revenue to £3.5m, an area targeted for future expansion.
Dean explained that the merger would eliminate competitive overlap. “Both businesses are very similar, so behaving as competitors didn’t benefit either side. This combination opens us up to new opportunities… while also reducing costs and creating new efficiencies.”
He also said that the acquisition diversified the firm’s customer base, with no single customer now accounting for more than 18% of revenue, which he described as important at a time of market instability.
