2 Sisters and Dunbia stay quiet on red meat deal
The two meat firms are understood to be close to reaching a deal to form a joint venture.
An informed industry source told FoodManufacture.co.uk: “I’m not at all surprised by this. Dunbia has been looking for investment for some time and 2 Sisters is always acquisitive.”
‘2 Sisters is always acquisitive’
The Northern Ireland-based meat processor Dunbia had a different business base from 2 Sisters, continued the source.
“It’s a shame two such large companies are considering merging part of their operations but it could be considered inevitable,” said the industry insider.
Last December, Dunbia sent a promotional document, known as a ‘teaser’, to businesses that may want to invest in the firm.
‘Ambitious plans to grow’
Speaking last year, a Dunbia spokeswoman told this website: “Dunbia has enjoyed consistent growth over the past number of years and has ambitious plans to grow and expand the business.”
She added: “Market dynamics are continually evolving and we are currently exploring the best options to ensure that we are well placed to meet the demands of the marketplace, now and in the future.”
The firm, headquartered in Dungannon, County Tyrone, acknowledged it had received “several expressions of interest” from would-be investors over the past two years.
In January, media reports speculated Dunbia could be acquired by the Brazilian giant JBS. Last year JBS acquired Moy Park in a deal worth £944.7M.
Beef, lamb and pork processor Dunbia has a turnover of about £800M. The business was founded nearly 40 years ago as Dungannon Meats in a frozen meat shop on the edge of the town in County Tyrone.
23,000 staff
Meanwhile, 2 Sisters employs more than 23,000 staff, drawn from 36 nationalities, in the manufacture of a wide range of food products from pizza, pies, poultry and puddings to ready meals and soup.
It started out from very humble beginnings in the early 1990s, and from there 2 Sisters has grown to become one of the leading food manufacturing companies in Europe, producing what it describes as ‘great quality, great value food’.
The firm has a strong UK presence in poultry, red meat, chilled and frozen food categories and owns Fox’s Biscuits and Goodfella’s Pizza.
The manufacturer’s customers include: Aldi, Asda, Co-op, KFC, Lidl, Marks & Spencer, Morrisons, Sainsbury, Tesco and Waitrose.
2 Sisters: "Always acquisitive"
“Dunbia has been looking for investment for some time and 2 Sisters is always acquisitive.”
- Industry insider
