Dawn Meats, the meat processing company headquartered in Waterford, is to acquire a significant minority stake in French rival Elivia, reports The Sunday Times.
Dawn Meats supplies supermarkets and restuarant chains throughout Europe including McDonald's, M&S, Tesco and Asda. It also operates the beef operations of several Irish dairy companies, such as Glanbia. The company plans to invest between €40-€50 million in acquiring around 40 per cent of Elivia, which is the second largest beef processor in France.
Dawn Meats has been in negotiations with Terrena co-op - the owner of Elivia - since last December. It is believed to be an attractive acquisition from the perspective of both parties, as both beef business are similar in size. Dawn Meats has experience in developing export markets and has developed energy efficient and sustainable processes which Elivia would benefit from. Furthermore, Dawn Meats has made no secret of the fact that it wishes to expand beyond the 12 markets it currently operates in, with chief executive Niall Browne previously commenting that, "consolidiation is happening, and Irish businesses in the food industry must adapt to this." The company now has seven plants in Ireland and has increased its UK presence by acquiring a beef processing site in Cornwall.
Get a FREE Digital Subscription!Enjoy full access to Hospitality Ireland, our weekly email news digest, all website and app content, and every digital issue.
Members of Terrena have approved the acquistion, but it will also be subject to approval by the relevant competition authorities. The final terms of the deal are expected to be announced in the near future.