Dean’s of Huntly has acquired fellow Aberdeenshire-based shortbread specialist Duncan’s of Deeside for an undisclosed fee.
The strategic deal between the two family-run manufacturers is aimed at enhancing Dean’s market share in the premium shortbread sector and leveraging combined business’ expertise and synergies.
Duncan’s co-owner and managing director Paul Duncan is to retain his leadership role at the business following the acquisition. “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,” he commented.
However, a consultation period is currently underway with around 40 production staff at Duncan’s existing bakery in Laurencekirk to see whether they will join the relocation of manufacturing to Huntly, 65 miles up the road.
Shifts at Laurencekirk Business Park are to be phased out over the next six months with production beginning inside a brand new 10,000 sq ft production hall at Dean’s Depot Road site – this brings the total floor space in Huntly up to around 45,000 sq ft. The company has also recently expanded its nearby 30,000 sq ft warehouse and logistics site to accommodate the Duncan’s integration.
Duncan’s supplies a range of handcrafted shortbread – including in flavours of Raspberry & White Chocolate, Orange, Lemon, and Chocolate & Orange as well as traditional and flavoured Scottish oatcakes – to UK retailers such as Tesco and to overseas retailers. Having reached capacity at its Laurencekirk bakery, the larger space in Huntly offers Duncan’s new production growth opportunity.
Dean’s of Huntly managing director Bill Dean said: “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”.
He told British Baker that the combined businesses will have around 180 workers and would “nudge £20m turnover” in the following financial year, which starts on 1 July 2025. Dean’s currently operates two 10-hour shifts, four days a week, and with further recruitment it would have capacity to add an additional £10m in turnover, added the MD.
Dean noted that operating in a very unstable economic environment meant the acquisition “made absolute sense for both families”. There would be strength together by sharing technologies and NPD teams, he said, and they would also be looking to cross sell to each other’s customers.
Dean’s of Huntly makes a wide range of shortbread products – both branded and own-label – for major retailers both domestic and abroad. Last year, it secured a £750k financing package from Virgin Money to help it meet demand during seasonal spikes.
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