US meat main Pilgrim’s Satisfaction has purchased one other UK-centric enterprise, snapping up Kerry Group’s meats and meals operations.
Pilgrim’s, majority-owned by Brazil-based meat big JBS, stated the deal values the Kerry belongings at an “enterprise worth” of GBP680m (US$942.4m).
In a separate announcement, Kerry stated it had bought the meats and meals enterprise – which incorporates Richmond sausages and Fridge Raiders meat snacks – “for a money consideration of EUR819m topic to routine closing changes”.
The deal provides to Pilgrim’s presence within the UK that has been constructed on acquisitions. In 2017, the publicly-listed group acquired meat processor Moy Park from JBS. Two years later, Pilgrim’s purchased UK pork group Tulip from Denmark-based co-op Danish Crown.
“The transaction enhances our value-added portfolio by including market-leading manufacturers equivalent to Denny, Richmond and Fridge Raiders, which we count on to ship a better and extra secure margin profile,” Pilgrim’s CEO Fabio Sandri stated.
In addition to promoting manufacturers, Kerry’s meats arm can also be a private-label producer. The division can also be the house of meat-free model Style & Glory. The meals facet of the enterprise produces chilled and frozen prepared meals. It additionally homes the Oakhouse home-delivery unit. Pilgrim’s stated the belongings it’s buying generated gross sales of “over GBP725m” mixed in 2020.
Final December, Bloomberg reported Kerry, which can also be a global provider of meals elements, was weighing up the way forward for its consumer-facing companies, which additionally embody a presence in dairy.
Kerry declined to remark on the time however, two months later, introduced it was reviewing what to do with its dairy-related companies within the UK and Eire.
Talks over a doable sale of the dairy belongings to Eire’s Kerry Co-Operative Creameries have been suspended in April.
In its stock-exchange submitting to announce the take care of Pilgrim’s, Kerry stated: “The strategic evaluation of the dairy enterprise has been accomplished and there will probably be no disposal of the dairy enterprise at the moment.”
On the sale of the meats and meals belongings, Kerry CEO Edmond Scanlon added: “This transaction additional enhances Kerry’s focus as a number one business-to-business ingredient options supplier for the meals, beverage and pharmaceutical markets.”