As part of the deal, the McCarren family will retain a small minority of the company. It will also secure the futures of 180 staff at the plant.

No figures have been released, but managing director of the Kepak Group John Horgan described the deal as a ‘major investment’. The plant in Cavan has a processing capacity of over 6,500 pigs per week.

Operations at McCarren’s will be overseen by Michael Kelly, who formerly served as Kepak’s site manager in Clonee.

“We look forward, subject to Competition Authority approval, to working with the staff and suppliers at McCarren’s and to integrating the business into the Kepak chilled meat business. It’s a major and long term investment for the company,” Horgan said.

This is Kepak’s first venture into primary pig processing, so it is unlikely there will be any Competition Authority concerns.

Debts were reported to have been rising at McCarren & Co. In the accounts to the year end 31 March, 2012, net debt reportedly rose from €1.7m to €7.5m.

McCarren’s were forced to take a substantial write-down on monies owed by Olhausen after the sausage company went into receivership last October with debts of €10 million owed to Ulster Bank.

McCarren & Co has been a family operation for five generations and was established in 1860.

IFA pig chairman Pat O’Flaherty said he is hopeful the deal will drive competition for pigs.

“We welcome Kepak’s purchase of McCarren’s. It is good news for Irish pig farmers as well as the country as a whole. It should help secure a supply of pigs as well as jobs in the region. Most of all we hope the deal will help drive competition in the market,” O’Flaherty said.