Dawn Meats signs deal with French cooperative
Dawn Meats will initially acquire 49% of Elivia, with an option to increase the share to 70% by 2019. Terrena said the move coincided with an ambitious three-year investment plan to modernise production and the Elivia information systems.
Terrena reported a turnover of €4.7 billion in its 2013 annual report, and Elivia calls itself “the flagship of the Terrena Group cooperative’s meat sector”, representing “more than 40% of turnover for the agrifood cluster”. However, according to Reuters, Elivia sells around 90% of its products in France and is struggling in the face of falling beef consumption in the country. Terrena aims to combat this by agreeing the deal.
Hubert Garaud, president of Terrena, said: “We 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 today... to establish, in partnership with the Dawn Meats Group, an important player who will present strong prospects and will have sustainable opportunities in the European and world market.”
Dawn Meats, a leading meat supplier in Britain and Ireland, which exports to over 40 countries worldwide, aims to expand its international business through the acquisition.
Niall Browne, CEO of the company, 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 export. We have the will to develop the activities of Dawn Meats both in Ireland and abroad: this combination with Elivia is a great opportunity to achieve this goal.”
