Kerry Group plc has reached agreement to sell its Consumer Foods’ Meats and Meals business in the UK and Ireland to Pilgrim’s Pride Corporation.

The agreement was reached for a cash consideration of €819 million (£704 million) subject to routine closing adjustments.

The meats and meals business provides convenience food solutions, Kerry says.

The financial results for the year ended December 31, 2020 attributable to the business were revenue of €828 million, earnings before interest, tax, depreciation and amortisation (EBITDA) of €86 million, profit before tax of €63 million, and gross assets of €521 million, Kerry Group added.

The meats business brands include: Richmond; Denny; Galtee; 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”, according to the group.

It was noted that the proceeds from the sale will be used for general corporate purposes and the continued strategic development of the Taste and Nutrition business.

The transaction is expected to close in the final quarter subject to customary closing conditions and regulatory approvals.

Following today’s announcement, Kerry Group 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, the group added.

Edmond Scanlon, CEO of Kerry, said: “Kerry’s strategy for the past 30 years has been to continuously evolve our portfolio, as we progressed on our journey to becoming a market-leading taste and nutrition company.

“Pilgrim’s is a global provider of high-quality food products and I am convinced they will make an excellent future owner of the Meats and Meals business. I wish to thank the 4,500 employees of the business for their contribution to Kerry over many years.”

Fabio Sandri, CEO of Pilgrim’s, commented: “We look forward to welcoming Kerry Consumer Foods’ Meats and Meals business’ talented management team and other team members, led by Nick Robinson, to the Pilgrim’s family, and we look forward to working together to drive growth and deliver value for all of our stakeholders.”