Kepak Group has acquired the red meat arm of 2 Sisters Food Group from Boparan Holdings for an undisclosed fee, as 2 Sisters aims to restructure its operations following a tumultuous year.
Kepak will acquire the business and assets of 2 Sisters Red Meat Limited, including four UK production facilities and one cold storage facility in Truro, Cornwall.
The four production sites included in the deal are the beef and lamb processing sites in Merthyr Tydfil, Wales and McIntosh Donald in Portlethen, Scotland, a retail packing factory at Victoria in Cornwall, and a beef processing site in Bodmin, Cornwall.
Collectively, Kepak estimates that the sites can process and market approximately 250,000 cattle and over 1 million lambs annually, and the company claims that the acquisition will significantly strengthen its operations in both the UK and Ireland.
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 our existing businesses in Ireland and in the UK.
“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. 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.”
For 2 Sisters, the sale comes as part of a restructuring operation following a tumultuous year for the meat processor, following allegations that the company was altering use-by dates of some poultry products.
Following the scandal, former 2 Sisters Food Group CEO Ranjit Singh Boparan stepped down from his role to become the president of 2 Sisters’ parent company Boparan Holdings, and he was succeeded by former Nestlé executive Ronald Kers in May.
Ranjit Singh, president of Boparan Holdings added: “We are pleased to announce this transaction of our Red Meat business.”
“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.”
“With customers and consumers at the heart of everything we do, we will continue to focus on delivering great quality, great value products every day.”
© FoodBev Media Ltd 2018