PILGRIM’S TO ACQUIRE KERRY GROUP’S MEATS AND MEALS BUSINESSES FOR £680M
Listed global foods company Pilgrim’s Pride Corporation has sealed a deal to buy the meats and meals business of Kerry Consumer Foods in the UK and Ireland for £680 million.
Following the acquisition close – expected in the fourth quarter subject to the usual approvals – Pilgrim’s will have a significant value-added protein and prepared foods business anchored by some strong brands such as Denny, Richmond and Fridge Raiders.
Kerry Meats makes branded and private label meats, meat snacks and food-to-go products in the UK and Ireland, while Kerry Meals is a specialist in ethnic chilled and frozen ready meals. The combined businesses generated over £725 million in annual sales last year. Kerry has also introduced branded meat-free products.
Fabio Sandri, Pilgrim’s’ CEO commented: “The transaction adds market-leading brands which we expect to deliver a higher and more stable margin profile. We also believe that the acquisition will enable us to develop new and innovative products through the businesses’ combined expertise.”
Kerry Consumer Foods’ CEO Nick Robinson described the acquisition as “an exciting new phase” for the business.
Pilgrim’s already has a strong position within the global protein market, and this deal is complementary to that by extending the company into prepared and branded products segments.
For Kerry Group, the disposals tie in with Kerry’s strategy to focus more on being a business-to-business ingredient solutions provider for the food, beverage and pharmaceuticals markets.