The new owner of Longforgan-based grower Scotherbs is “excited” by expansion opportunities after taking over the major food-service and retail supplier.
Langmead Farms part of the West Sussex-based Langmead Group of agri, plant and energy businesses took over the 250-acre concern just west of Dundee for an undisclosed sum earlier this summer.
Now chief executive Ian Summerfield has revealed how the group hopes to increase crop production at its new site and to step up investment in new products and manufacturing facilities in the years to come.
He said integration of the two complementary businesses had gone well over the last six weeks, with both sides learning from the process.
“Scotherbs will operate as a distinct business within Langmead’s Group, serving specific customers and markets, though with the benefit of increased group support resources,” said Mr Summerfield.
“Scotherbs has a clear strategy for growth which is yielding current success. The agreement between Langmeads and Scotherbs will further build on both businesses’ skills, growing and packing capabilities, distinctive provenance and reputation but bring additional access to investment funds to support long-term growth plans.
“This investment is a further commitment by us to growth in the herb industry through consistently delivering great quality for our customers.”
He said the group also expected to increase its workforce in Longforgan which Mr Summerfield described as a “great bunch of people who look after their customers really well” though some existing roles and responsibilities may change over time.
Director Fiona Lamotte and chairman Robert Wilson will retain their involvement, with Mr Summerfield stressing that the duo’s “primary concern” was for the future of the £6.5 million turnover company.
Langmead Farms reported a turnover of £7.5m last year following three years of aggressive growth, but Mr Summerfield said current trading suggested the combined business could expect an annualised total earnings haul of around £18m. It is hoped the agreement will also help streamline external supply deals from abroad.
The family-owned group, which takes its employee headcount to around 250, operates 5,000 acres in West Sussex, with additional land and facilities in Spain.
Owner David Langmead, who started out supplying salad crops to supermarkets, already enjoys long-established relationships with customers including Tesco, Morissons and Lidl.
Mr Summerfield said the business had “huge potential”, while Langmead offered the “opportunity for investment to grow the business in the direction our customers want”.
Adding Scotherbs to the Langmead portfolio will add new capabilities such as the supply of washed prepared herbs, and will also help increase the proportion of products “home grown” by the group.
Mr Wilson said Langmead was committed to supporting Scotherbs’ own long-term plan.
“There is very strong alignment in each business’ approach and values, such as investment in people, building strong, long-term relationships with our customers, suppliers and communities and having a real passion for our industry as well as a commitment to expanding herb growing in Scotland,” he said.