Kepak to acquire UK meat processor

IRISH meat processor Kepak has reached an agreement with Boparan Holdings Ltd to acquire the UK business and assets of 2 Sisters Red Meat Ltd, for an undisclosed sum.

The company says the acquisition will significantly increase Kepak’s value and scale, providing a number of complementary strategic fits.

It says the move strengthens the group’s key customer supply chain partnerships and it is both a Brexit and a euro-sterling hedge for the existing and the new Irish-UK businesses.

It is also 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 processes and markets — mainly in the Britain — about 250,000 cattle and more than one million lambs annually from more than 13,000 farmers spread from Scotland to Cornwall.

John Horgan, managing director, Kepak Group, said Kepak has a clear strategy to grow its meat and food businesses in partnership with key customers and in markets that are complementary to its existing businesses in Ireland and in Britain.

“The acquisition of this red meat business, with its very solid UK retail, food service and manufacturing relationships, marks a very significant next step in delivering on our strategy,” he said.

“IT is a great fit for Kepak. The addition of these facilities to Kepak Group significantly increases the value and scale of our business.”