Kepak snaps up 2 Sisters sites

Irish meat company Kepak has acquired the red meat assets of the UK’S 2 Sisters Food Group, including the Mcintosh Donald plant at Portlethen in Aberdeenshire.

Along with four sites in England and Wales, Kepak estimates the purchase will allow them to process and market approximately 250,000 cattle and more than one million lambs annually, and the company claimed that the acquisitions would significantly strengthen its operations in both the UK and Ireland.

John Horgan, managing director of Kepak said the facilities – purchased by 2 Sisters from the Dutchbased Vion group four years ago – were a “great fit” for the business.

He said he looked forward to working with key customers in order to grow the company’s combined Irish and UK businesses and to further develop relationships with existing and new customers, adding: “In doing so we will collaborate closely with the livestock farmers who have been loyal suppliers to these UK sites.”

NFU Scotland livestock committee chairman Charlie Adam said the acquisition demonstrated further consolidation in the processing sector: “Margins in the red meat sector continue to be tight, and livestock farmers need to see sustainable investment in the sector to allow the Scottish red meat industry to continue to compete internationally.

“In its announcement today, Kepak Group has stated its desire to grow the business in the UK and collaborate closely with livestock farmers who supply existing UK sites.

“Hopefully, this will mean increasing sales of Scottish beef and lamb and investing in a supply chain to deliver on-farm profitability and productivity.”