Irish meat processor Dawn Meats has agreed to acquire 49% stake in Terrena’s beef processing arm Elivia, in a deal worth €40m.
The move is in line with Terrena's strategy to boost its beef processing business outside its home market as it witnesses slump in demand.
Upon completion of the acquisition, Terrena plans to invest around €100m in upgrading the Elvia beef unit over a period of three years, which will become a joint venture with Dawn Meats.
Dawn Meats will have an option to acquire around 70% stake of the joint venture in 2018 and 2019.
Terrena president Hubert Garaud said: "We want to take the opportunity... to establish with Dawn Meats a major player with solid prospects and long-term outlets on both the European and world market."
Dawn Meats, which supplies its products to over 40 countries, generated over €1bn in sales during last year.
Elivia business also had sales of about €1bn in 2013, while Terrena had sales of €4.7bn during the same period.
Image : Terrena plans to invest around €100m in upgrading the Elvia beef business. Photo: courtesy of rakratchada torsap / FreeDigitalPhotos.net.
