Kepak Group, an Irish meat-processing company, recently took its first step into the sector of frozen micro snacks and chilled sandwiches by purchasing the UK group, Summit Foods. Being a recognised presence in the UK’s fast food domain, Summit Foods generates about £24 million (€29 million) yearly and runs operations with a 200 strong team.
Though certain products of the group align with other brands within Kepak’s range, this deal represents the company’s premiere venture into this particular food sector. Kepak, originating from Co Meath and established as a modest butcher shop in Dublin in 1966, refrained from revealing the deal’s monetary particulars, but cited this move as part of its plan to expand its food services both organically and via strategic acquisitions. Today, Kepak has vastly grown to achieve a turnover of €1.8 billion and employ over 4,500 personnel.
According to the head of Kepak’s food division, Brian Farrell, this acquisition is in perfect alignment with their expansion strategy, and it enhances their UK presence within the out-of-home and convenience food channels. The purchase will also allow for Kepak’s portfolio expansion thanks to Summit’s fresher-for-longer sandwiches, chilled and frozen meals, and snacks by carving a deeper niche across these markets.
While Summit Foods will carry on operating from its home base in Preston, no changes to the brand, operations, or offerings to customers will be made for now. The existing leadership team will remain for a transition period of six months. Kepak aims to take advantage of its existing distribution network and market know-how to boost Summit Foods’ future development. This acquisition bolsters Kepak’s position in the burgeoning food-to-go and micro-snacking UK market, valued around £6.8 billion.
Kepak assures it will continue focusing on carrying out regular operations for Summit’s customers and employees, but also acknowledges the acquisition’s capability to provide avenues for prolonged growth.
In the near-term, both businesses are set to merge their procedures and explore possible integrations, especially within the scope of product development and distribution. Kepak runs a total of 13 production plants in Britain and Ireland, in addition to sales offices scattered throughout Europe, US, and Asia. The group supplies a diverse array of raw and adjunct meat-based items to the retail and food service sector, featuring celebrated brands such as Big Al’s, Rustlers, Celtic Beef, and John Stone.