About 140 jobs have been saved by the acquisition of North Yorkshire-based meat products specialist Holmesterne by its Leeds-based neighbour Troy Foods.
The undisclosed rescue deal comes after near 40 year-old business - which counts major supermarkets such as Asda and Tesco among its customers - had experienced margin pressure and brought in restructuring experts Interpath, who led the transaction. Holmesterne is said to have had a strong track record in the sector but faced high costs across ingredients, packaging and factory costs, with the headwinds being compounded by increases in employment taxes.
Accounts for £20m turnover Holmesterne, covering the year to the end of June 2024, show pork prices in particular had put pressure on its gross margin. Between 2023 and 2024, the firm had reduced headcount by more than 20 people.
Interpath helped secure the sale to Troy Foods, a supplier of salad and sauce products to the retail and food manufacturing industry, and part of which was saved itself in a pre-pack deal in 2022. Troy employs 240 staff and traces its roots back to the early 1920s.
David Kempley, chairman of Troy Foods, said: “We’ve long admired the team at Holmesterne and the strong reputation they’ve built over the years. This acquisition represents an exciting diversification for Troy Foods. We have invested in the growth of Troy Foods (Salads) and see diversification as a development step, complementing our product range whilst offering synergies and enhancing stability.
"We’re glad to be in a position where we can support a fellow Yorkshire business that has had a tough time and excited to welcome Holmesterne into the Troy family. We are committed to working with the team to help it regain its momentum. Together, we believe we can unlock new opportunities for growth and innovation, while continuing to deliver the high standards our customers expect."
Keith Tindell, managing director at Holmesterne Foods, which has bases at Leeming Bar and Brompton on Swale, said: “We’re thrilled to join the Troy Foods group and begin this new chapter for Holmesterne. The last year has brought its share of challenges, but throughout it all, our team has remained resilient and focused.
"Becoming part of a like-minded, family-owned business gives us the platform we need to stabilise and grow. We’re confident that with Troy’s support, we can build a stronger future for our people, our customers, and our suppliers."
Tom Swiers, director and food and sector lead at Interpath, who led the transaction, said: “The food industry is a fundamental pillar of the Yorkshire economy and this deal brings together two notable firms in the region.
"The acquisition by Troy Foods creates a stable base for Holmesterne to steady its operations and rebuild after some challenging trading. For Troy, this supports its continued growth and diversification into new areas across an incredibly diverse customer base.”
