Kepak Group has reached agreement to acquire the UK business and assets of 2 Sisters Red Meat Ltd for an undisclosed sum.
The Irish meat and value-added food producer, advised by Pegasus Capital, has stated that the “strategic growth-orientated” acquisition will significantly strengthen the group’s key customer supply-chain markets.
The agreement, reached with Boparan Holdings Ltd, is considered both a Brexit and a €/£ hedge for the existing and the new Irish-UK businesses.
The group said it is also 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 and which supply Irish, European and UK customers.
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: McIntosh Donald, Portlethen, Scotland (operating since 1966) and three St. Merryn sites including – Merthyr (operating since 1987), Glamorgan (operating since 1999) , Wales, and Bodmin and Victoria in Cornwall (operating since 1995).
Collectively, these four sites and the associated central support office at Talgarrek House and cold storage facilities at Truro, process and market, mainly in the UK, about 250,000 cattle and more than one million lambs annually from more than 13,000 farmers spread from Scotland to Cornwall.
Commenting on the acquisition, John Horgan, managing director of 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.
‘Great fit’
He said it is a “great fit” for Kepak.
“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,” he said.
Kepak was founded in 1981 by Noel and Marie Keating. The Irish meat and food producer has a turnover of approximately €1 billion and employs 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.
