Craig Mostyn buys Watsonia assets

Fremantle-based agribusiness company Craig Mostyn Group has bought the fresh pork business of George Weston Foods/Watsons Foods.

Announcing the acquisition, CMG chief cxecutive David Lock said the investment would further strengthen CMG's commitment to its PPC/Linley Valley Fresh brand.

"We are 100 per cent committed to our fresh pork business, with all our pork sourced from WA producers," Mr Lock said.

"When offered the opportunity to add further certainty and strength to the WA industry, we commenced negotiations and a lengthy due diligence process.

"I'm delighted this has now culminated in our purchase of the fresh pork assets and business of George Weston Foods/Watsons Foods, which had already announced in July that it would be closing its smallgoods operation in Spearwood."

Up to 220 people lost their jobs when Don KRC, which manufactures products under the Watsonia and Don brands, announced a major restructure of its manufacturing operation

From November 7, 2008, CMG will own and manage GWF's 4000 sow piggery 'Wandalup Farms' and its production contracts with grow-out units around the state, plus some plant and equipment from Spearwood.

CMG hopes to also enjoy the support of existing GWF fresh pork customers, including supermarkets, who would now be supplied with Linley Valley Fresh pork.

"We'd hope to receive support from all retailers and supermarkets currently doing fresh pork business with GWF," he said.

Mr Lock confirmed that CMG would offer positions to GWF staff at Wandalup and call for expressions of interest from staff at Spearwood.

"We see this as, effectively, an integration, which will grow our business, while improving opportunities for existing staff and the new staff we welcome into CMG."

Strategically, the acquisition would give CMG greater certainty of supply of pigs and therefore greater certainty of supply of fresh pork to domestic and export customers.