The two facilities will become part of ABP’s UK meat division, which includes an existing processing facility in Perth, Scotland. The sale is expected to complete at the end of July 2023.
News of the acquisitions comes just over three months after Scotbeef revealed plans to make more than half of its Wolverhampton-based members of staff redundant, after losing a contract with a high-street supermarket.
Commenting on the purchase, group chief executive Frank Stephenson said: “We look forward to working with the team in Scotbeef to ensure a smooth and seamless transition for farmer suppliers, colleagues and customers at the Queenslie and Bridge of Allan plants.
“It will be very much business as usual with a commitment to building on Scotbeef’s well established tradition and reputation for high quality Scottish red meat products.”
ABP is one of Europe’s leading meat processors with more than 70 years’ experience, with more than 40 years operating in Scotland.
Operating across Europe
The company employs more than 13,000 colleagues across its four divisions – Red Meat, Pet Foods, Renewables and Proteins – with processing facilities in nine countries and a turnover of more than €5bn (£4.28bn).
News of ABP’s purchase of the two Scotbeef sites followed a recent report from corporate finance house Oghma Partners, which found that merger and acquisition activity in food and drink was increasing, but the value of deals was falling.
More than 80% of deals had an estimated value of £10m or less, a figure Oghma attributed to a significant absence of middle to higher market deals during the period. Only 6% of transactions were above the £50m mark, falling below the five-year historic average of 12.5%.
In other acquisition news, this month saw food-to-go manufacturer Around Noon purchase The Soho Sandwich Company to create a £80m per annum turnover business.