Less than two years after ABP Food Group and Linden Food Group entered into a 50:50 joint venture in the Wexford-based Slaney Foods, a similar arrangement has emerged for the UK arm of Linden Foods.

The deal, agreed in principle, would mean that ABP will acquire a 50% stake in Linden Foods, to include facilities in Dungannon (slaughter and retail packing), an abattoir at Burradon in England and high-end meat supplier, Kettyle Irish Foods, based in Fermanagh.

It is understood that Linden’s majority shareholder, Fane Valley Co-op, has acquired the remaining shares in Linden held by the Waugh family, and then moved to complete the proposed deal with ABP, leaving both parties with 50%.

In 2015, Linden had a €256m turnover and an operating profit of €1.35m.

In 2011, Linden opened a new £10m retail packing facility in Dungannon, which focused on delivering specialist lines to upmarket retailers such as Marks & Spencer.

Unlike ABP, Linden lacks direct market access to the big four British supermarkets (Tesco, Sainsburys, Asda and Morrisons).

Linden’s tie-up with ABP should allow the company to optimise the value of a carcase.

Fane Valley Co-op will be a much smaller business than it was two years ago, after it also sold its dairy business to Lakeland Dairies in 2016.

Full coverage: ABP - Slaney deal

ABP to buy 50% of Linden Foods

The deal will see Linden Foods become a 50:50 joint venture between ABP and Fane Valley Co-op.