ABP proposes acquisition of Pilgrim’s Europe’s Llanidloes lamb facility
ABP has agreed to acquire Pilgrim’s Europe’s principal Welsh processing operation in Llanidloes, Powys, under a proposed transaction.
The facility is located in central Wales, close to one of the UK’s leading sheep-producing areas. Over the years, it has established a strong position in the market for premium Welsh lamb products.
ABP and Pilgrim’s Europe said the site’s “highly skilled” employees would move to ABP under Transfer of Undertakings (Protection of Employment) (TUPE) arrangements.
The deal would exclude Pilgrim’s Europe’s lamb retail packing operation in Andover, Hampshire. ABP already operates lamb deboning and retail packing facilities elsewhere across its UK network, making the Andover business outside the scope of the proposed acquisition.
Pilgrim’s Europe has separately launched a consultation on plans to close the Andover facility towards the end of January. Subject to the outcome of that process, the company said it aims to support affected employees by offering “alternative employment opportunities” at other UK locations.
Kevin Cahill, chief executive of ABP UK, 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.
“We look forward to welcoming the Llanidloes team and working closely with the producers who supply the site, providing them with the benefits and support available through our network of more than 3,500 sheep farmers across the UK. Welsh lamb is recognised globally for its quality, and Llanidloes provides a strong platform to serve growing demand across both domestic and international markets.”
The proposed acquisition would strengthen ABP’s presence in the Welsh lamb supply chain while giving the company an established base from which to serve domestic and export customers. It also reflects wider food and beverage industry trends, including investment in regional processing capacity, supply chain resilience and premium provenance-led products.
Headquartered in County Louth, Ireland, ABP ranks among Europe’s major meat processors. The group supplies fresh and frozen meat to retailers and foodservice customers from facilities in Ireland and the UK, as well as affiliate sites in Belgium, Germany, the Netherlands and Poland.
Pilgrim’s Europe forms part of US-based Pilgrim’s Pride and employs approximately 17,000 people. Its network comprises more than 40 facilities across the UK, Ireland, France and the Netherlands. The company produces well-known brands such as Richmond and Fridge Raiders.
Ivan Siqueira, president of Pilgrim’s Europe, said: “Following a strategic review of our lamb operations, we believe ABP is the right long-term owner for the Llanidloes business. 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.*
“We are incredibly proud of our colleagues at Llanidloes and Andover, as well as the farmers and producers who have supported the business over the years. Our priority is to support colleagues throughout this process and maintain continuity of supply and service for customers and producer partners during the transition.”
The transaction comes against a backdrop of changing food manufacturing trends and continued investment in food processing technology, food distribution trends and food and drink industry innovation. Companies across the sector are also responding to food and drink sustainability priorities, evolving food and drink regulations, developments in food and drink packaging, and changing approaches to food and drink marketing.
At the same time, food and drink consumer trends continue to increase demand for products associated with quality, regional identity and reliable provenance. Welsh lamb’s international reputation positions the Llanidloes facility to benefit from these market developments if the acquisition proceeds.
