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As revealed by the Irish Farmers Journal on Wednesday morning, Dawn Meats has announced a majority-owned shareholding in a joint venture in the UK with Dunbia.
The will see Dawn acquiring outright Dunbia’s slaughter facilities in Slane, Co Meath, and processing facilities in Kilbeggan, Co Westmeath.
The deal will result in Dawn having nine facilities in the Republic of Ireland.
Dawn Meats will continue to trade as Dawn in the Republic of Ireland, while the joint venture will trade as Dunbia in the UK, with Dunbia founder Jim Dobson acting as chief executive of the new entity there.
Dawn Meats chief executive Niall Browne will assume the positon of executive chair.
The deal will see Dawn Meats and Dunbia process approximately 900,000 cattle and 2.6m sheep annually across the UK and Ireland.
It is estimated that the deal will see Dawn grow its control of the national beef kill to between 24% and 26%.
A deal between the two bodies has been rumoured for over 12 months.
Brexit-proof
Niall Browne said the deal gives Dawn certainty in a post-Brexit scenario.
“Given the uncertainty posed by Brexit, this partnership should further underpin the competiveness of both operations to the benefit of all stakeholders in the UK, Ireland and across Europe.
“We are very excited about the future of both companies and the opportunities that this transaction will bring for our staff, customers and suppliers. In our key operating markets we will be involved in three leading national businesses with Dawn Meats in Ireland, Dunbia in the UK and Elivia in France, with our cooperative partners Terrena.”
Jim Dobson from Dunbia said the deal underlines the company's commitment to the UK business.
“This is the right strategic partnership for Dunbia’s staff and customers and sees us joining with a company with a shared heritage of excellence in the production of premium beef and lamb products. The new UK joint venture confirms our future as a leading supplier in the UK market. In a consolidating industry this deal makes strategic sense for both companies, our customers and our farmer suppliers," he said.
Expert analysis in this week’s Irish Farmers Journal
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