Irish meat processor, Kepak has confirmed it has reached agreement to buy the red meat business of UK based 2 Sisters for an undisclosed sum. Under the terms of the deal, Kepak has said it will take control of the business with immediate effect.

The red meat business of 2 Sisters comprises four main production sites across the UK, including McIntosh Donald facility in Portlethen, Scotland; and three St Merryn sites at Merthyr, Wales, and Bodmin and Victoria in Cornwall, England.

Kepak said the deal will significantly increase the group’s value and scale as well as strengthening its partnership with a number of key customers, most notably supermarket giant Tesco. The Clonee headquartered group added that the deal would provide it with a new source of raw material but also act as both a Brexit and a currency (€/£) hedge for the existing and the new Irish-UK businesses.

Kepak say the acquisition will see it processing about 250,000 cattle and more than 1million lambs annually in the UK, supplied by more than 13,000 farmers spread from Scotland to Cornwall.

John Horgan, managing director of Kepak, said the 2 Sisters red meat business was a perfect fit for the group’s strategy to continue to grow in its key markets in the UK and Ireland.

“The acquisition of this red meat business, with its very solid UK retail, foodservice and manufacturing relationships, marks a very significant next step in delivering on our strategy. It is a great fit for Kepak. The addition of these facilities to Kepak Group significantly increases the value and scale of our business,” added Horgan.