FOOD manufacturing business Cranswick plc, which owns Thornaby company Lazenby's, has acquired Continental Fine Foods (CFF) for £11.7m.

However, that figure could rise by a further £3.5m if the new business reaches its projected earnings targets.

CFF is a leading supplier of continental meats and delicatessen products, based at Trafford Park, in Manchester.

CFF will continue to operate as an independent business within the Cranswick group, under its existing management team of managing director Rollo Thompson, sales director Gary Johnstone and operations director Bob Swithenbank.

Cranswick's product range includes high quality sausages and hams for the delicatessen market, which complements the business of CFF.

Both businesses believe there are substantial benefits to be gained from the merger.

Bernard Hoggarth, managing director of Cranswick, said: "We welcome CFF to Cranswick in what is an exciting development for both companies.

"CFF has an excellent record built around quality, service and new product development, which will continue to drive the business forward.

"Customers, suppliers and staff can rest assured it will be business as normal."

Cranswick is based in East Yorkshire with food manufacturing activities spread across Teesside, Yorkshire and Lancashire.

The company is quoted on the London Stock Exchange and has been one of the best performing stocks in the food sector over recent years.

In the year to March, it recorded a 22 per cent rise in turnover, to £192.6m.

CFF's turnover has risen annually from £8m for the year to July 31, 1998, to a forecast £27.7m for the year to July 31, 2001.