Kepak, the Irish meat and value-added food producer, have today (July 30th) announced that they have reached an agreement to purchase 2 Sisters Red Meat Ltd.
They reached the agreement for the deal with Boparan Holdings Ltd, advised by Pegasus Capital, for an undisclosed fee. The acquisition will significantly increase Kepak’s value and scale providing a number of complementary strategic fit. It will help strengthen the Group’s key customer supply chain partnerships; it is both a Brexit and a €/£ hedge for the existing and the new Irish-UK businesses; it is 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; and Three St. Merryn sites: Merthyr, Glamorgan, Wales, and Bodmin and Victoria in Cornwall, England.
These four sites collectively process and market approximately 250,000 cattle, in excess of 1 million lambs every year from a supply chain of over 13,000 farmers from Scotland to Cornwall.
“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. It is a great fit for Kepak.”, said John Horgan, Managing Director, Kepak Group of the deal.
“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 continued.