Kerry Group is to promote its client meals’ meats and meals enterprise within the UK and Ireland to US meals firm Pilgrim’s Pride for €819m in money.
The meats enterprise contains branded and personal label meats, meat snacks, food-to-go and meat-free merchandise within the UK and Ireland.
The manufacturers embrace Denny, Galtee, Richmond, Fridge Raiders and Rollover.
The meals enterprise primarily serves the UK market, offering merchandise to a variety of chilled and frozen prepared meals in addition to dwelling supply and able to prepare dinner meals to retailers together with Sainsburys and Tesco.
Last 12 months, the divisions made a revenue earlier than tax of €63m off the again of income of €828m.
The sale is a part of Kerry’s acknowledged technique to aggressively focus actions on its style and diet divisions.
“This transaction additional enhances Kerry’s focus as a number one enterprise to enterprise ingredient options supplier for the meals, beverage and pharmaceutical markets,” stated Edmond Scanlon, Kery Group CEO.
“Pilgrim’s is a worldwide supplier of high-quality meals merchandise and I’m satisfied they’ll make a superb future proprietor of the Meats and Meals enterprise.”
4,500 workers work within the companies which have been offered, with round 3,000 of these within the UK.
The operations embrace giant vegetation in Shillelagh in Co Wicklow and Carrickmacross in Co Monaghan, whereas round 300 are employed in Northern Ireland the place there’s a manufacturing unit in Enniskillen.
A spokesman stated the overwhelming majority of workers would switch over to Pilgrim’s Pride as a part of the transaction, together with CEO of Kerry Consumer Foods, Nick Robinson.
“We are happy to have the chance to place Pilgrim’s as a number one ready meals and branded merchandise participant by means of this acquisition,” stated Fabio Sandri, CEO of Pilgrim’s.
Kerry Group stated it will use the proceeds of the sale for basic company functions and for the continued strategic growth of its style and diet enterprise.
The firm additionally stated it will now “separate and realign” the remaining dairy actions within the client meals division.
Kerry Group had been in talks with the Kerry Co-Op with a view to forming a three way partnership with it involving the dairy enterprise, as a part of a strategic evaluate it was finishing up of the division.
However, in April Kerry Group stated the negotiations had been suspended.
“The strategic evaluate of the dairy enterprise has been accomplished and there will probably be no disposal of the dairy enterprise presently,” Kerry Group stated in an announcement tonight.
Pilgrim’s Pride supplies meals merchandise to clients in additional than 100 international locations and employs round 58,000 individuals.
The take care of Kerry Group is anticipated to shut within the final quarter of the 12 months.