In a joint statement, the red meat processor, which supplies fast food chain McDonald‘s, said: “The board of Dawn Meats and the board of Terrena confirm that they have entered into exclusive talks that may result in Dawn Meats … purchasing a non-controlling interest in Terrena’s beef subsidiary Elivia.
“Terrena and Dawn Meats’ beef businesses are similar in size and are complementary in their respective markets.
‘New business opportunities’
“Their shared strategic focus is underpinned by three key objectives: quality, improved efficiency and joint development of new business opportunities, especially on the European market.”
FoodManufacture.co.uk understands that discussions between the two parties are at a relatively early stage and more developments are expected to be revealed in 2014.
According to sources close to the deal, Elivia, which claims to be France’s second biggest beef supplier, with sales of €1bn (£839.6M) would stand to benefit from Dawn Meat’s global reach and scale.
Meanwhile, Dawn Meats recognises that the European meat industry is set for continued consolidation and wants to be proactive rather than reactive in that process, industry insiders claimed.
Dawn Meats supplies beef and lamb cuts, fresh and frozen beef patties and ready-to-heat meals to customers internationally. It clocked up a similar sales figure to Elivia in its past full year and employs 2,700 people across the UK, Ireland and France.
The company’s brands include Black Angus beef, Nature’s Meadow beef and lamb and Ridings Organic beef and lamb. It was set up in County Waterford in the Republic of Ireland, in 1980.
Elivia employs 2,600 staff. Its parent Terrena is based in the west of France, covering the Loire Valley, Poitou-Charentes and Brittany.