The recently combined business is projected to generate £20 million in revenue this year. It will operate from Dean’s production facility in Huntly, Aberdeenshire, after a six-month transition period.
All employees from Duncan’s will be offered positions at the Dean’s facility, located 54 miles away. Following the cessation of production, the Laurencekirk site will be listed for sale.
“The acquisition of Duncan’s of Deeside enables us to build on our recent successful organic growth by acquiring a well-established, high-quality business in the shortbread market,” said Bill Dean, managing director at Dean’s of Huntly.
“We are excited to build on the successful journey begun by the Duncan family and their team.”
Founded in 1975 by Bill and Helen Dean, the business now employs 130 people and produces handcrafted shortbread, biscuits, and savoury bites.
Paul Duncan, co-owner and managing director of Duncan’s of Deeside, will transition into the role of deputy MD in the combined business, having taken over the firm from his parents upon their retirement.
“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,” Duncan stated.
Mutually Beneficial Move
The phased transition will commence by reducing shifts at Duncan’s facility, initially from three to two, then to one, and finally to zero.
Over this six-month interval, production will gradually shift to the 10,000 square foot facility in Huntly. Since both businesses offer branded and private label products and utilize similar manufacturing methods, the transition is expected to proceed smoothly.
Dean’s of Huntly has invested significantly in its facility in recent years, with Dean noting its capacity to produce approximately £30 million in sales when fully optimized. The combined business is also anticipated to generate £3.5 million in export revenue, a figure Dean aims to grow.
“Both businesses are very similar, so behaving as competitors didn’t benefit either side,” he explained.
“This combination opens us up to new opportunities that we may have been hesitant to pursue as independent entities, while also reducing costs and creating new efficiencies.”
Additionally, this merger leads to a more diversified customer base, ensuring that no single customer accounts for over 18% of revenue.
“In this day and age with a lot of instability in the market, you want a stronger spread of business,” Dean emphasized.
No further financial details of the acquisition have been disclosed.
