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TOP NEWS: Kerry sells Richmond, Fridge Raiders unit for EUR819 million

Fri, 18th Jun 2021 08:19

(Alliance News) - Foodservice firm Kerry Group PLC on Friday said it has agreed to sell its Consumer Foods' Meats & Meals business in the UK and Ireland to Pilgrim's Pride for EUR819 million.

The Tralee, Ireland-based firm, however, confirmed that it will retain its dairy business. Kerry in February announced it is conducting a strategic review of the business and in April, it said talks for a potential sale were suspended.

Kerry shares were 3.8% higher at EUR110.05 each on Friday morning in London, valuing the company at EUR19.49 billion.

The meats business the company has agreed to sell is a manufacturer of branded and private label meats, meat snacks, food-to-go and meat-free products, with its brands including sausage maker Richmond, Fridge Raiders and Rollover.

The Meals business primarily serves the UK market and "specialises in authentic ethnic chilled and frozen ready meals, multi-cuisine ready to cook ranges, and home delivery meals under the Oakhouse brand."

The Meats & Meals business achieved revenue of EUR828 million and pretax profit of EUR63 million for 2020.

Kerry plans to use the sale proceeds for the ongoing strategic development of the Taste & Nutrition business, as well as for general corporate purposes.

The deal is expected to close in the final quarter.

"Following today's announcement, we will separate and realign the remaining dairy-related activities within the Consumer Foods Business. The strategic review of the dairy business has been completed, and there will be no disposal of the dairy business at this time," it added.

By Eric Cunha; ericcunha@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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