Global food company Pilgrim’s Pride Corp. announced that it has entered into an agreement to purchase the Meats and Meals business in the UK and Ireland from Kerry Consumer Foods. With the acquisition, the company will be poised to expand its foothold in the value-added protein and prepared foods markets. The deal has enterprise value of $952 million.
“We are pleased to have the opportunity to position Pilgrim’s as a leading prepared foods and branded products player through the acquisition of Kerry Consumer Foods’ Meats and Meals business,” Fabio Sandri, the chief executive officer of Pilgrim’s, said in a recent release on the transaction. “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.”
Kerry Meats manufactures branded and private label meats, meat snacks, and food-to-go products sold in the UK and Ireland. Kerry Meals produces ethnic chilled and frozen ready meals for the UK market. The two businesses employ over 4,500 workers and generated more than £725 million in sales during the year that ended on Dec. 31, 2020.
“Pilgrim’s has agreed to acquire a leader in convenience foods solutions that sells into a wide breadth into the prepared and branded products segments,” said Sandri. “The inclusion of the Kerry Consumer Foods’ Meats and Meals business follows our strategy of a well-balanced portfolio of products, geographies, and customer base. We believe that the acquisition will also enable the company to develop new and innovative products through the business’ combined expertise to support our key customers’ growth objectives.”
The transaction is expected to close in the fourth quarter of this year, though the deal is subject to customary closing conditions, regulatory approvals, and closing purchase price adjustments.