Pilgrim’s Europe is selling a UK lamb slaughterhouse to Ireland-based meat peer ABP Food Group.
Pilgrim’s, which is part of Brazilian protein giant JBS, suggested the sale of the abattoir in Llanidloes, Wales, marks a broader decision to focus resources on pork, poultry and processed products.
In a joint statement with ABP, Pilgrim’s Europe said its Hampshire-based lamb packing facility in Andover, south-east England, is also earmarked for closure.
“Pilgrim's Europe has begun a consultation process regarding the proposed closure of the Andover site towards the end of January,” the private label and branded meat supplier said.
“Subject to consultation, the company hopes to retain colleagues through alternative employment opportunities across its UK operations.”
Andover is not included in the ABP deal, which Pilgrim’s added was indicative of the Ireland group’s “existing lamb deboning and retail packing capabilities across its UK network”.
Meanwhile, all of the 140 staff employed at Pilgrim’s site in Llanidloes will move to the new owners once the transaction is completed in December, an ABP spokesperson confirmed with Just Food.
Llanidloes will become part of ABP’s UK meat division, which also operates lamb abattoirs at Yetminster and Kingswinford in England, Lurgan and Dungannon in Northern Ireland and Bridge of Allan in Scotland, the spokesperson added.
Ivan Siqueira, the president of Pilgrim's Europe, said the decision to sell the Llanidloes abattoir followed a review of the Richmond and Moy Park brand owner’s lamb operations.
"The proposed transaction will enable continued focus and investment in our core poultry, pork and value-added businesses, while providing opportunities for future growth at Llanidloes within a specialist lamb processor,” Siqueira said.
London-headquartered Pilgrim’s Europe operates around 40 processing plants in the UK, Ireland, France and the Netherlands supplying the retail and foodservice channels with own label and brands such as Fridge Raiders, Denny and Oakhouse.
Its sister company in the US, Pilgrim’s Pride, is under a full takeover proposal from JBS, which currently owns around 82% of that business.
Pilgrim’s Europe clarified it will exit lamb processing all together in the UK post the sale of the Llanidloes site and the closure at Andover.
ABP also supplies the same customer channels from facilities in Ireland, the UK, Belgium, Germany, the Netherlands and Poland. The manufacturer of the Scotch Prime and Surrey Farm beef brands, and the Dorset Crown lamb line, generates an annual turnover of around €5bn ($5.5bn).
Kevin Cahill, the CEO of ABP’s UK unit, said: “Llanidloes is an excellent strategic fit for our lamb business. The site is ideally positioned in the heart of Welsh lamb production and has a long-standing reputation for quality, supported by an experienced and dedicated team.”
Earlier this year, ABP announced job cuts at its Ireland-based cutting and deboning facility at Waterford, although the beef abattoir at the same location was not affected.
In January, ABP said it would close its Co. Tyrone site in Linden, Dungannon, with the loss of 338 jobs.
A deal entered earlier this year to acquire the UK-based beef processor Dovecote Park is under review by the country's competition regulator.
