Kerry in deal with Northern

Kerry Group has expanded its consumer foods operations in the UK in a complex deal with Northern Foods which sees Kerry acquire two of Northern's sausage brands and also take over Northern's chilled distribution operations. A spokesman for Kerry would not give any details of the deal's value but said that, while it was "relatively small" in the context of the group, it was a significant development for Kerry Foods in the UK.

The brands element of the deal involves Kerry acquiring the Porkinsons brand and also the licence to use Northern's Bowyers sausage brand. Kerry already owns the two biggest sausage brands in the UK - Walls and Richmond - but Porkinsons brings Kerry into the premium end of the market.

The second part of the deal involves Kerry combining its chilled van sales operations in the UK with Northern's Pork Farms Bowyers business.

Kerry has 29 depots in the UK and the Pork Farms distribution business is thought to be about half the size of the Kerry operation. The deal will see the expanded Kerry fleet distributing Pork Farms' pastry and fried products business under the Kerry Foods Direct to Store banner.

The deal with Northern, which manufactures Green Isle frozen food and Goodfellas frozen pizzas in Ireland, has been agreed in principle and is expected to come into operation in March next year.