Vestey moves to snap up top Scottish butcher in ‘£30m deal’

By ERIKKA ASKELAND
Published on Tuesday 7 February 2012 00:00

A PRIVATE food conglomerate has bought a Scottish butcher with a Royal Warrant for a price understood to be in the region of £30 million.

Vestey Group bought a controlling stake in Inverurie-based Donald Russell after it was put up for sale last year when the firm received takeover approaches from a trade buyer and a private equity group.

Surrey-headquartered Vestey, which traces its 115-year-old roots back to a Liverpool butcher’s shop, is believed to have fought off several large supermarket chains in a competitive auction for the Aberdeenshire-based business.

Last year Donald Russell enjoyed a 46 per cent boost in profits to £1.2m, on sales £26.7m following a £6m investment programme in a Highland distribution and fulfilment centre.

Donald Russell traces its roots to Scottish farmer William Donald, 79, and butcher John Stone, 71. The butcher and wholesaler was established in 1974, supplying upmarket restaurants and hotels, including Kensington Place, Simpson’s-in-the-Strand and the Grand Hotel in Monte Carlo.

In 2000, the firm launched its mail order website.

The business will continue to operate out of Inverurie in Aberdeenshire under the same management team, Vestey has confirmed. It is understood management has retained a small stake in the business.

Hans Baumann, the managing director who owns a one-third share of the business, said: “Donald Russell continues to flourish, with its most successful trading year yet in 2011 and the support of Vestey Foods will allow us to further develop and invest in the brand.

“There are strong synergies between our two businesses. All the management and staff have welcomed this excellent news, which is not only good for Donald Russell but also for the local community and jobs market.”

George Vestey, the fourth generation chief executive of Vestey Foods said: “We have long admired Donald Russell’s combination of traditional specialist butchering skills with a cutting edge e-commerce and mail order operation and look forward to seeing it flourish and grow in the future.”

Last year Vestey was driven out of Venezuela by the country’s socialist president, Hugo Chavez, after a century of cattle farming. Vestey, founded by two brothers in 1897, pioneered early refrigeration techniques so it could ship meat to Europe from South America, where it bought swathes of farmland.

Vestey, had sales of £593.9m in 2010.

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Tuesday, February 7, 2012 at 12:39 PM

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Family guy

Tuesday, February 7, 2012 at 11:47 AM

1 - Yes, but what is this company doing with their £30 million? Adding to their foreign company acquisition portfolio perhaps?

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Charlie McFarley

Tuesday, February 7, 2012 at 10:49 AM

What a shame. Control of another successful Scottish company disappears outwith our country.

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