As we predicted last week, Kepak has reached agreement to buy the red meat division of British-based 2 Sisters Food Group. The deal will effectively double Kepak’s processing capacity, bringing its annual cattle throughput to over 500,000 head, with sheep reaching 1.35m.

The deal, for an undisclosed sum, strengthens the processor’s strong relationship with the retail giant Tesco, with the Kepak group now supplying Tesco Ireland and Tesco UK. It is understood that Tesco played an influential role in ensuring the deal between the two processors went ahead, therefore giving Kepak an immediate blue-chip retailer as it re-enters the British beef and lamb processing sector, having exited back in 2007.