Kerry Group to sell consumer foods’ meats and meals business to Pilgrim’s Pride for €819m

Irish taste and nutrition solutions provider Kerry Group has agreed to divest its consumer foods’ meats and meals business in the UK and Ireland to American food company Pilgrim’s Pride for €819 million in cash.

The meats and meals business provides convenience food solutions to major retailers. Its revenue in 2020 was €828 million, profit before tax was €63 million. Its gross assets for the year that ended 31 December 2020 were €521 million.

The meats business of Kerry Group in the UK and Ireland manufactures branded and private label meats, food-to-go, meat snacks, and meat-free products. Some of its brands are Richmond, Galtee, Denny, Rollover, and Fridge Raiders.

On the other hand, the meals business mainly caters to the British market. It specializes in chilled and frozen ready meals, multi-cuisine ready-to-cook varieties, and home delivery meals under the brand – Oakhouse.

The business being divested involves 4,500 employees.

Edmond Scanlon – CEO of Kerry Group said: “Kerry’s strategy for the past 30 years has been to continuously evolve our portfolio, as we progressed on our journey to becoming a market-leading Taste & Nutrition company.

“This transaction further enhances Kerry’s focus as a leading business to business ingredient solutions provider for the food, beverage and pharmaceutical markets. Pilgrim’s is a global provider of high-quality food products and I am convinced they will make an excellent future owner of the Meats and Meals business.”

Kerry Group said that the proceeds from the transaction will be used for general corporate purposes and also for the continued strategic development of its taste and nutrition unit.

The Irish taste and nutrition solutions provider also said that it will separate and realign its remaining dairy-related operations within the consumer foods unit. The company said that it has wrapped up a strategic review of the dairy business and has decided that there will be no disposal for it at this time.

For Pilgrim’s Pride, the acquisition of Kerry Consumer Foods’ meats and meals business will enable it to become a major food company with a considerable value-added protein and integrated prepared foods business anchored by a portfolio of well-known brands.

Fabio Sandri – CEO of Pilgrim’s Pride said: “We are pleased to have the opportunity to position Pilgrim’s as a leading prepared foods and branded products player through this acquisition.

“We look forward to welcoming Kerry Consumer Foods’ Meats and Meals business’ talented management team and other team members, led by Nick Robinson, to the Pilgrim’s family, and we look forward to working together to drive growth and deliver value for all of our stakeholders.”

The deal, which is subject to regulatory approvals and other customary closing conditions, is expected to close in Q4 2021.