FRANCE - Dawn Meats, the second largest red meat processor in Ireland and the UK will take a 49 per cent interest in Elivia, which could be increased to 70 per cent in 2018 or 2019.
The takeover bid is now being discussed by the Elivia staff unions and workers’ representatives and the deal is expected to be put to the competition authorities in the first quarter of next year.
Hubert Garaud, President of Terrena, said: "Our beef activities are relatively the same size and are complementary in their respective markets.
“We also share the same values and the same strategic vision orientated around three objectives: quality, improving performance and the joint development of new markets.
“We want to seize the opportunity for our farmers and our employees to establish a partnership with the Dawn Meats Group to become an important player with strong prospects and which will have sustainable opportunities in the European and world markets.”
Niall Browne, CEO of Dawn Meats, said: "Size is a prerequisite to win in international markets where quality, efficiency and traceability of meat are essential attributes.
“This agreement will bring our two groups the scale necessary to promote our steady growth in exports.
“We have the will to develop the activity of Dawn Meats both in Ireland and abroad: the combination with Elivia is a great opportunity to achieve this goal.”
Elivia will be led by its current CEO Guy Wermeister.
Terrena has also announced that it is launching an ambitious investment plan programmed over three years for its Elivia subsidiary.
The aim is to modernise production sites in Le Lion d'Angers and Villers-Bocage and develop a system that will meet the expectations of efficiency and traceability of its customers.
TheCattleSite News Desk