An announcement from Kepak, the Irish meat and value-added food producer, stated that the acquisition would significantly increase its value and scale, providing a number of complementary strategic fits.
The company said the move strengthened its key customer supply chain partnerships. It also said that it was “a Brexit and a €/£ hedge for the existing and the new Irish-UK businesses”; and ensured “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”.
Kepak, the Irish meat and value-added food producer was advised by Pegasus Capital on the deal, which includes 2 Sisters' McIntosh Donald site at Portlethen in Scotland; and three St Merryn sites: Merthyr, Glamorgan, Wales; and Bodmin and Victoria in Cornwall.
Four sites and cold storage
Collectively, the 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 1m lambs annually from more than 13,000 farmers.
Under the terms of the agreement, Kepak assumed control of 2 Sisters’ Red Meat operations with immediate effect. A Kepak spokeswoman said its aim was to grow business at all sites acquired, so no redundancies were planned as a result of the move.
She said the McIntosh Donald name would be retained and the current intention was to name the other three sites St. Merryn Merthyr, St. Merryn Bodmin and St. Merryn Victoria.
“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,” said John Horgan, managing director, Kepak Group. “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.”
'Value and scale'
“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.”
2 Sisters Red Meat Limited has been trading since 2013.
Ranjit Boparan, president of 2 Sisters Holdings, which owns 2 Sisters Food Group, said: “We have had approaches over the past four years for our red meat operations, and we have been talking to several interested parties during this period. But as we always make clear, any sale has to be at the right time with the right buyer, and it had to be a deal that fitted with our long-term strategy.”
“This deal represents another major step in transforming 2 Sisters and building a better business. Kepak Group is the ideal home for our red meat business, and this deal is a perfect strategic fit for them. We wish them future success.”
2 Sisters’ McIntosh Donald site at Portlethen in Scotland has been operating since 1966 and processes beef and lamb. The site at St Merryn, Bodmin, in Cornwall, started processing beef in 1987. The processing plant at St Merryn, Merthyr Tydfil, in Glamorgan, Wales, began running in 1999 and slaughters and debones beef and lamb and packs both species in retail packs. The site at St Merryn, Victoria, in Cornwall, opened in 1995 and is a specialist retail and foodservice packing facility.
Kepak, founded in 1981 by Noel & Marie Keating, is an Irish meat and food producer with a turnover of, approximately, €1billion (£888.7m), employing 3,000 people across 12 production sites and a number of sales offices.
The company processes beef, lamb, pork and convenience foods in Ireland and in the UK. It 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.