ABP has reached an agreement in principle with Fane Valley Co-op to acquire the remaining 50% holding in Linden Food Group.
The transaction includes Linden Foods in Northern Ireland and Slaney Foods and Irish Country Meats (ICM) businesses in the Republic of Ireland.
These businesses have operated as an ABP/Fane Valley joint venture for the last five years.
According to ABP, Linden, Slaney and ICM will continue to operate under the same trading names for the ‘foreseeable’ future.
“The Linden, Slaney and ICM businesses have progressed positively during our joint venture relationship with ABP,” said Trevor Lockhart, chief executive of Fane Valley.
“The trading environment however does not stand still, and all businesses need to continue to evolve and develop to maintain their competitive position in the market.
“Having reviewed the way forward with our JV partner and taking account of anticipated market developments, we have jointly concluded that the future objectives for Linden, Slaney and ICM can be best achieved under a new business structure, hence the aforementioned announcement.”
Frank Stephenson, chief executive of ABP, added: “This development is the direct result of our successful joint venture arrangement, which has enabled all parties to improve their offerings to customers and to compete more effectively nationally and internationally.”
The transaction is subject to the approval of regulatory and competition authorities. The financial terms of the deal have not been disclosed.
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