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June 18, 2021

Pilgrim’s Pride makes Kerry meats, meals business latest UK buy

The US meat group, majority-owned by JBS, has bought UK firms Moy Park and Tulip in recent years.

US meat major Pilgrim’s Pride has bought another UK-centric business, snapping up Kerry Group’s meats and meals operations.

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Pilgrim’s, majority-owned by Brazil-based meat giant JBS, said the deal values the Kerry assets at an “enterprise value” of GBP680m (US$942.4m).

In a separate announcement, Kerry said it had sold the meats and meals business – which includes Richmond sausages and Fridge Raiders meat snacks – “for a cash consideration of EUR819m subject to routine closing adjustments”.

The deal adds to Pilgrim’s presence in the UK that has been built on acquisitions. In 2017, the publicly-listed group acquired meat processor Moy Park from JBS. Two years later, Pilgrim’s bought UK pork group Tulip from Denmark-based co-op Danish Crown.

“The transaction enhances our value-added portfolio by adding market-leading brands such as Denny, Richmond and Fridge Raiders, which we expect to deliver a higher and more stable margin profile,” Pilgrim’s CEO Fabio Sandri said.

As well as selling brands, Kerry’s meats arm is also a private-label manufacturer. The division is also the home of meat-free brand Taste & Glory. The meals side of the business produces chilled and frozen ready meals. It also houses the Oakhouse home-delivery unit. Pilgrim’s said the assets it is acquiring generated sales of “over GBP725m” combined in 2020.

Last December, Bloomberg reported Kerry, which is also an international supplier of food ingredients, was weighing up the future of its consumer-facing businesses, which also include a presence in dairy.

Kerry declined to comment at the time but, two months later, announced it was reviewing what to do with its dairy-related businesses in the UK and Ireland.

Talks over a possible sale of the dairy assets to Ireland’s Kerry Co-Operative Creameries were suspended in April.

In its stock-exchange filing to announce the deal with Pilgrim’s, Kerry said: “The strategic review of the dairy business has been completed and there will be no disposal of the dairy business at this time.”

On the sale of the meats and meals assets, Kerry CEO Edmond Scanlon added: “This transaction further enhances Kerry’s focus as a leading business-to-business ingredient solutions provider for the food, beverage and pharmaceutical markets.”

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Free Whitepaper
img

What is the impact of historically high inflation on the UK consumer landscape?

The average UK consumer is experiencing a severe cost-of living crisis as inflation surges to a forty-year high and the price of goods continues to rise. This shock is the result of the sharply increasing costs of commodities, energy, and the ongoing conflict in Ukraine, and is threatening FMCG manufacturers, retailers, and foodservice operators’ ability to survive and grow. Inflation will have a profound effect on many consumer-facing industries in 2022 and beyond. Consult GlobalData’s new whitepaper, Inflation in the UK: The Impact of Historically High Inflation on the UK Consumer Landscape, to better understand shifts in consumer behavior and their impact on spending patterns, as well as the implications for UK businesses. This whitepaper covers:  
  • Why has global inflation returned with a vengeance?
  • What is the current inflation situation in the UK?
  • What impact is inflation having on UK retail sales?
  • What tactics are businesses relying on to tackle the effects of high inflation?
  • How are consumers changing their behaviors to cope with the higher cost of living?
  • Which industry sectors are most vulnerable to reduced consumer demand?
  • How is the government responding to high inflation?
  • How long will high inflation last in the UK?
  • How can your company survive and thrive in a high inflation environment?
Enter your details here to receive your free whitepaper and ready your business for these increasingly uncertain times.
by GD50 Custom
Enter your details here to receive your free Whitepaper.

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