An Irish meat processor has announced it has reached a deal with Boparan Holdings to acquire the UK business and assets of 2 Sisters Red Meat, for an undisclosed sum.
Kepak said the acquisition will significantly increase the firm’s value and scale, providing a number of complementary strategic fits.
It said the move strengthened the group’s key customer supply chain partnerships and it was both a Brexit and a €/£ hedge for the existing and the new Irish-UK businesses and a sustainable source of UK raw material for Kepak’s meat based value added businesses which are located both in Ireland and in the UK. It supplies customers in Ireland, the UK and Europe.
Under the terms of the agreement, Kepak assumes control of the business with immediate effect.
This UK business is operated from four key production sites.
They are McIntosh Donald, Portlethen, Scotland; and three St. Merryn sites; Merthyr, Glamorgan, Wales, and Bodmin and Victoria in Cornwall, England.
Collectively, these four sites and the associated central support office at Talgarrek House and cold storage facilities at Truro, process and market about 250,000 cattle and more than 1 million lambs annually from more than 13,000 farmers spread from Scotland to Cornwall.
John Horgan, managing director, Kepak Group, said: “Kepak has a clear strategy to grow its meat and food businesses in partnership with key customers and in markets that are complementary to our existing businesses in Ireland and in the UK.
“The acquisition of this red meat business, with its very solid UK retail, foodservice and manufacturing relationships, marks a very significant next step in delivering on our strategy.
“The addition of these facilities to Kepak Group significantly increases the value and scale of our business. We are delighted to welcome all our new colleagues that will transfer with the acquisition.
“We look forward to working with them to grow our combined Irish and UK businesses and to further develop relationships with existing and new customers. In doing so we will collaborate closely with the livestock farmers who have been loyal suppliers to these UK sites for many years.”
Kepak was founded in 1981 and now boasts a turnover of, approximately, €1 billion, employing 3,000 people across 12 production sites and a number of sales offices.
Kepak processes beef, lamb, pork and convenience foods in Ireland and in the UK and has sales offices in key European, Asian and African markets serving international retailers and foodservice operators with prime cuts of meat and on-trend food concepts.
Kepak consumer brands include Rustlers, Big Al’s, Feasters and Stript Snacks.
The 2 Sisters red meat units being acquired by Kepak: