A deal is imminent where Irish meat processor Kepak will acquire the redmeat division of UK processor 2 Sisters Food Group which owns the McIntosh Donald abattoir in Portlethen.

While the financial details of the deal are unknown, this is a significant acquisition for Kepak that will almost double the group’s annual cattle kill to over 500,000 head and will more than double its sheep kill to 1.35m between the UK and Ireland.

The deal will include two other processing sites located in Cornwall in the south west of England, and Merthyr Tydfil in Wales under the St Merryn brand. Across these three sites is a combined capacity to process circa 235,000 head of cattle and 750,000 sheep per annum. This would give Irish meat packer Kepak an 11% share of the British cattle kill and 5% of the British sheep kill.

In terms of the UK and Irish beef processing industry, this acquisition by Kepak creates the third super meat processing group in Ireland and the UK alongside Larry Goodman’s ABP and Dawn Meats who own the Highland Meats factory in Ayrshire as well as the Dunbia factory in Elgin which recently ceased production.

The deal would see Kepak, re-enter the UK market for the first time in ten years. They previously ran the Turriff abattoir when they purchased Buchan Meats in 1996 for £2.15m. Before selling the plant to Morrison’s supermarket in 2005. Kepak also used to have plants in Preston, Wakefield and Peterborough.

This will see the three largest Irish meat processors, ABP, Dawn Meats, and Kepak, slaughtering 2.7m head of cattle annually, giving them control of 60% of the entire cattle kill across both the UK and Ireland.

Who are Kepak Group?

Kepak, is a privately owned company controlled by the Keating family, with an annual turnover of close to €1bn. The company processes 275,000 cattle, 600,000 sheep and 350,000 pigs across its abattoirs in Ireland. A core part of Kepak’s business is in value-added burgers, which are sold under its consumer brands Big Al’s and Rustlers.

In 2013, Kepak acquired the Larry Goodman owned burger manufacturer Silvercrest, which is based in Ballybay, Co Monaghan, and was involved in the horsemeat scandal. At the time, Silvercrest had a major supply contract with global burger giant, Burger King.

Kepak employs 3000 people across its sites and also has a substantial meat trading business, AgraKepak, which trades some 65,000 tonnes of beef, pork, lamb and fish proteins.